HomeMy WebLinkAbout1628 Stapleton
In Re: Patrick Stapleton, : File Docket: 12-027
Respondent : X-ref: Order No. 1628
: Date Decided: 2/6/14
: Date Mailed: 2/12/14
Before: John J. Bolger, Chair
Nicholas A. Colafella, Vice Chair
Raquel K. Bergen
Mark R. Corrigan
Roger Nick
Kathryn Streeter Lewis
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding possible violation(s) of the Public Official and Employee Ethics
Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq., by the above-named Respondent. At the
commencement of its investigation, the Investigative Division served upon Respondent
written notice of the specific allegations. Upon completion of its investigation, the
Investigative Division issued and served upon Respondent a Findings Report identified as
an “Investigative Complaint.” A Stipulation of Findings and a Consent Agreement were
subsequently submitted by the parties to the Commission for consideration. The
Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement
has been approved.
I.ALLEGATIONS:
That Patrick Stapleton, a public official/public employee in his capacity as a Member
and Chairman of the Pennsylvania Liquor Control Board (“PLCB”), violated Sections
1103(a) and 1105(b) of the State Ethics Act (Act 93 of 1998) when he used the authority of
his public position for the private pecuniary benefit of himself, members of his immediate
family, and/or a business with which he and/or members of his immediate family are/were
associated by soliciting from PLCB vendor(s) donations of wine and/or liquor for events
hosted by the Keystone Weekend Inc., an entity with which Stapleton and/or members of
his immediate family are/were associated; when he solicited vendor(s) of the PLCB to
arrange for and provide a celebrity chef(s) for the same event; when he received
hospitality, including but not limited to: lunches, dinners, golf outings (which included
cocktails, meals, greens fees and other amenities), paid for by PLCB vendor(s), all at a
time when the vendor(s) had an ongoing business/contractual relationship with the PLCB;
and when he failed to disclose on Statements of Financial Interests for the 2010 and 2011
calendar years the receipt of gifts, transportation, hospitality and/or lodging from vendor(s)
of the PLCB.
II.FINDINGS:
1. Patrick Stapleton served as a Member of the Pennsylvania Liquor Control Board
(“PLCB”) from approximately June 17, 1997, through October 5, 2012.
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a. Stapleton was initially appointed effective June 17, 1997, and reconfirmed
on May 10, 2000, May 17, 2004, and November 20, 2008.
b. Stapleton served as Chairman of the PLCB from approximately January 17,
2007, through October 5, 2012.
c. Stapleton also was appointed Chair of the National Alcohol Beverage
Control Association (“NABCA”) effective May 2011.
2. The PLCB was created by state law on November 29, 1933, at the end of
prohibition.
a. Pennsylvania is one of eighteen (18) states and two (2) Maryland counties
that actively participate in the distribution process to control the sale of
alcohol.
3. The PLCB is governed by a three (3) Member Board, appointed by the Governor
and confirmed by two-thirds of the State Senate.
a. The Board appoints a Chief Executive Officer.
4. The PLCB is responsible for regulating the sale of alcohol, educating consumers on
the responsible use of alcohol, and working to prevent underage use of alcoholic
beverages.
5. The PLCB accomplishes its responsibilities through marketing and merchandising a
retail operation of approximately 608 stores with sales of approximately $2.1 billion
in 2011-2012.
a. The PLCB also oversees:
1. Regulation of 17,000 licenses.
2. Administration of alcohol education and awareness programs.
b. The current employment complement of the PLCB is approximately 4,500
people with four (4) labor associations.
6. Between December 6, 1933, and April 1934, the PLCB commenced operation by
initiating the following:
a. More than 600 licenses were approved, giving the new license holders, such
as bars and restaurants, the right to legally sell alcohol for on-premises
consumption in Pennsylvania.
b. The PLCB opened sixty-three (63) state stores and five (5) warehouses in
the Commonwealth.
c. The PLCB established four (4) district offices in Philadelphia, Harrisburg,
Pittsburgh, and Wilkes-Barre.
1. Since 1939, the PLCB has maintained its headquarters at the
Northwest Office Building.
7. On April 12, 1951, the Pennsylvania General Assembly combined existing beer and
liquor laws into one statute, entitled the “Liquor Code.”
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8. On July 1, 1987, the Pennsylvania General Assembly reenacted the Liquor Code
and created the Bureau of Liquor Control Enforcement (“BLCE”), within the
Pennsylvania State Police, which is responsible for enforcing the Liquor Code and
the Board’s regulations; and the Office of Administrative Law Judge, an
autonomous office within the PLCB, which is responsible for presiding over citation
and enforcement hearings.
9. The PLCB provides products and services through seven (7) dedicated
departments designed to meet the specific needs of PLCB customers and
licensees.
a. Each of the seven (7) dedicated offices has specific deputies in charge of it.
b. Dedicated offices are: Finance, Supply Chain, Marketing & Merchandising,
Retail Operations, Administration, Regulator Affairs, and External Affairs.
10. The PLCB is a high volume purchaser of wine and spirits in the United States.
a. The PLCB currently operates approximately 608 stores, which are leased
from private landlords.
b. The PLCB outsources warehousing services for three (3) distribution centers
in Pennsylvania.
c. There currently are approximately 25,595 beverage alcohol licenses and
permits throughout Pennsylvania and 5,391 registered malt and brewed
beverage brands granted by the PLCB.
11. Products that are sold by the PLCB are categorized as either regular items, luxury
items, or special order items.
a. Regular items are products that are routinely stocked in the distribution
centers.
b. Luxury items are products that are purchased intermittently or as one-time
purchases.
c. Special order products are items that are not stocked in the PLCB
distribution centers but may be special ordered by either licensees or by
consumers.
d. On or about February 4, 2004, the PLCB began the Chairman’s Selection
Program, which offers wine at premium collection stores.
12. As a Control State, the PLCB is the only retail seller of wine/spirits/beer in the
Commonwealth.
a. The PLCB may grant licenses to entities/establishments for the sale of
alcoholic beverages for on-site consumption as well as for vendors who sell
products for off-site consumption.
b. In order for an alcoholic beverage to be sold in Pennsylvania, it must be
authorized for sale by the PLCB.
1. If a product is “listed” it is authorized for sale and stocked as a
product in PLCB retail stores.
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13. In order to have a product sold by the PLCB, a manufacturer/supplier of alcoholic
beverage products may employ several different methods to have its product
represented within the Commonwealth of Pennsylvania.
a. A manufacturer/supplier may market its product directly to the PLCB for the
listing/delisting process as well as for sales and distribution.
b. A manufacturer/supplier may market its product through a vendor.
1. For all sales/distribution, a vendor of record must be identified with
the PLCB.
2. A manufacturer/supplier may also be a vendor/vendor of record.
c. A manufacturer/supplier may enlist the services of a broker, who then in turn
represents the manufacturer/supplier and its products before the PLCB.
1. Any broker may represent multiple manufacturers/suppliers and/or
multiple products before the PLCB.
2. A broker may also serve as a vendor/vendor of record.
14. Once a product is manufactured, if a manufacturer/supplier is utilizing a
vendor/vendor of record, product is then shipped to the custody of the
vendor/vendor of record.
a. The vendor takes physical custody of the product for delivery to the PLCB.
b. Payment for the product is made between the PLCB and the vendor/vendor
of record.
c. If a manufacturer/supplier is serving as its own vendor/vendor of record,
product is shipped directly from the manufacturer/supplier to the PLCB.
15. If a manufacturer/supplier is utilizing a broker, product is still distributed from the
vendor/vendor of record to the PLCB.
a. Where a broker is utilized, payment is made from the PLCB to the broker.
b. A broker may also serve as a vendor/vendor of record.
16. The PLCB periodically reviews all products currently sold in PLCB retail stores to
evaluate their profitability, and at or about the same time considers new products
for placement in PLCB retail stores through a process known as “listing” and
“delisting.”
a. Listing/delisting occurs twice a year, usually in the fall and spring of each
year.
b. The goal of listing/delisting is to achieve a 1:1 ratio, [such that] for each
product listed, one product is delisted, due to the limited amount of shelf
space available at each PLCB retail store.
17. The process to present a new product for listing is regulated through the PLCB.
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a. Only individuals/entities with a Pennsylvania Vendor Permit may present
items for listing.
b. A fee of $150.00 (per item/per size) for each proposed new product listing is
required.
c. Appropriate paperwork as well as two (2) product samples for wine and one
(1) product sample for spirits is required to be submitted.
d. Once the appropriate application has been submitted, a date/time specific
will be scheduled for a vendor/broker to present new product to [staff]
members of the PLCB.
e. Generally two (2) bottles of a product are provided for sampling.
1. One (1) bottle for tasting and another for label review are submitted.
f. PLCB [staff] members usually responsible for evaluating new product are:
Director of Marketing and Merchandising
Chief Product Management and Pricing Division
Merchandising Pricing Coordinator(s).
g. Presentation time is limited to forty-five to ninety (45-90) minutes per
vendor/broker regardless of the number of items being presented for new
listing.
1. Sampling is to occur at PLCB headquarters in a room called the REC
Room.
h. Once a new product presentation has been made, a recommendation will be
made as to whether the new product should be listed (sold in PLCB retail
stores).
1. A report of products to be listed is forwarded to the Commissioners
for approval.
2. The Commissioners do not participate in the new product review
process.
3. Commissioners vote on the entire recommended new product list,
without any independent review of the product/support data.
4. The Director of Marketing and Merchandising along with the Chief of
the Product Management and Pricing Division make the final
recommendation to the Commission as to what product(s) should be
listed for sale.
5. Luxury wines and one-time buys, including the Chairman’s Selection
Program, are not subject to the listing/delisting process.
18. Delisting occurs simultaneously with the listing process.
a. The delisting process is formally termed “category management,” but is
commonly described as “bucketing” or “filtration” process.
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1. Products of like type are placed into categories; i.e. wines of a similar
vintage, type, style, price, etc., are grouped together.
2. Items are categorized by length of time listed: items listed for less
than one year are not eligible for delisting; items listed for between
eighteen to twenty-four (18-24) months are reviewed separately from
those items listed twenty-four (24) months or more.
3. After each item is reviewed, it is placed into a “bucket” if it passes the
“filtering” criteria. For example, if a product meets the threshold
criteria, it is “bucketed” to the next area of review.
4. Items are reviewed for their profitability with special attention being
placed on: how much profit [was] generated; how many stores
stocked the item; percentage of profit growth (20% growth is viewed
by PLCB as a “good product.”)
b. If a product is to be delisted, the vendor is notified and provided an
opportunity to avoid a delisting.
1. Actions such as an advertising campaign, discounts, and product
sampling are used to promote sales and possibly avoid a delisting.
c. Recommendations for delisting are similar to listings, where the Director of
Marketing and Merchandising along with the Chief of the Product
Management and Pricing Division make the final recommendation to the
Commission as to what product(s) should be delisted.
19. Prior to sometime in 2012, all product purchased by the PLCB was warehoused in
PLCB facilities until distribution to PLCB retail stores.
20. During calendar year 2012, the PLCB initiated a purchasing/inventory system of
bailment.
a. Through the PLCB’s bailment system, product is shipped to PLCB
warehouses from the vendor, as occurred pre-2012.
b. PLCB does not transfer payment of funds or ownership of the product until it
is to be shipped to the PLCB retail stores.
c. The PLCB system of bailment allows for greater control over inventory and
also limits the risk/exposure the PLCB may have regarding product loss.
1. Through the bailment process, PLCB maintains no more than three
(3) to five (5) weeks’ worth of inventory within its warehouses.
2. Currently twenty seven (27) vendors are under bailment with the
PLCB, which represents approximately 80% of the cash value of
PLCB products sold.
d. Prior to initiating a bailment process, PLCB staff were responsible for
predicting the market for a particular product; if sales were not as expected,
the PLCB would suffer a financial loss through spoilage of product if an
excessive amount of product remained unsold.
21. The primary vendors providing products to the PLCB are:
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Southern Wine and Spirits
Capital Wine and Spirits
Allied Beverage (Majestic).
22. Southern Wine and Spirits of America, Inc. (“Southern”), [claims] to be the nation’s
largest wine and spirits distributor.
a. Since its creation/formation in 1968, Southern has maintained its corporate
office in Miami, Florida.
b. Currently, Southern represents clients in no less than thirty-five (35) states
including “Control States” and “Open States.”
1. An “Open State” refers to a state/jurisdiction where wine, spirits, and
beer sales are conducted through an independent beverage
distributor/retailer.
2. A “Control State” is where a state or county “controls” or regulates the
distribution and/or the sale of wine, spirits, and/or beer.
3. Pennsylvania is the largest Control State operation in the United
States.
23. Southern Wine & Spirits of Pennsylvania operates as a licensed wine and spirits
broker-marketer.
a. Southern expanded its operations into Pennsylvania in 1995.
b. Southern employs approximately two-hundred twenty-five (225) sales and
support staff statewide in Pennsylvania.
c. Southern maintains two (2) offices within Pennsylvania, one in the King of
Prussia area, and the other in the Greater Pittsburgh geographic area.
1. These employees are responsible for marketing and merchandising
alcoholic beverages to the more than six-hundred (600) PLCB state
stores, as well as Pennsylvania’s 14,500 on-premise accounts.
2. The PLCB is Southern’s only off-premise customer.
24. Brad M. Waxman (“Waxman”) is the Executive Vice President, General Manager of
Southern Wine & Spirits of Pennsylvania.
a. In January 1999, Waxman initiated his employment with Southern.
1. In 2002, Waxman was named Executive Vice President, General
Sales Manager of Southern’s Pennsylvania operations.
b. Mark Sweeney is the Vice President and General Manager of North
American Wine and Spirits, a division of Southern Wine and Spirits.
1. Sweeney also makes sales calls to PLCB officials and employees.
2. In 2008, Waxman was promoted to the position of Executive Vice
President/General Manager of Southern’s Pennsylvania operations.
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25. Southern is a broker and vendor/vendor of record for a number of wines and/or
spirits sold to the PLCB.
a. Waxman serves as a broker for a number of the products before the PLCB.
b. Products for which Southern serves as broker and/or vendor/vendor of
record account for between approximately 6.43% to 6.85% of PLCB total
Cost of Goods Sold (“COGS”) during the last five (5) years.
c. A list of Southern’s business with the PLCB is detailed below:
Fiscal Year
Supplier Name Fiscal Year Percent of COGS
Payment
SOUTHERN WINE & SPIRITS OF PA
2007-2008 $ 62,051,980.00 6.60%
SOUTHERN WINE & SPIRITS OF PA 2008-2009 $ 67,340,276.96 6.64%
SOUTHERN WINE & SPIRITS OF PA 2009-2010 $ 72,529,178.51 6.85%
SOUTHERN WINE & SPIRITS OF PA 2010-2011 $ 69,482,807.78 6.43%
SOUTHERN WINE & SPIRITS OF PA
2011-2012 $ 77,641,059.78 6.78%
* The spreadsheet above is only able to detail approximately 86% of PLCB inventory, as the remaining
percentage is made up of small purchases.
26. In addition to Brad Waxman, Mark Sweeney also markets products to the PLCB on
behalf of Southern.
27. Capital Wine & Spirits, LLC (“Capital”) claims to be one of the largest
wholesalers/brokers of wine and spirits in Pennsylvania.
a. Capital is a member of the Charmer Sunbelt Group, a nationwide distributor
of wine, spirits, beer, and other beverages.
b. The Charmer Sunbelt Group is a collection of privately held companies and
operates distributor/brokerage houses in no less than fifteen (15) states,
including Pennsylvania.
c. Capital employs more than two-hundred (200) employees and reports to sell
in excess of four million cases of wine and spirit throughout the
Commonwealth.
d. The reported 4 million cases of wine/spirit sales include sales to the PLCB.
28. Capital is a broker and vendor/vendor of record for a number of wines and/or spirits
sold to the PLCB.
a. Products brokered by Capital account for a total of between approximately
19.11% to 22.03% of PLCB total Cost of Goods Sold during the last five (5)
years.
b. A list of Capital’s business with the PLCB is detailed below:
Fiscal Year
Supplier Name Fiscal Year Percent of COGS
Payment
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1
BACARDI USA INC. 2007-2008 $ 65,399,563.92 6.96%
1
BROWN FORMAN 2007-2008 $ 50,057,434.25 5.33%
REMY COINTREAU USA INC. 1 2007-2008 $ 8,306,486.83 0.88%
CAPITAL WINE & SPIRITS 2007-2008 $ 40,178,158.61 4.28%
WHITE ROCK DISTILLERIES 2
2007-2008 $ 18,931,222.63 2.01%
BANFI PRODUCTS CORPORATION 2
2007-2008 $ 12,874,577.00 1.37%
SUTTER HOME WINERY 2
2007-2008 $ 11,305,649.31 1.20%
Fiscal Year
Supplier Name Fiscal Year Percent of COGS
Payment
BACARDI USA INC. 2008-2009 $ 62,721,532.75 6.19%
BROWN FORMAN 2008-2009 $ 46,707,019.90 4.61%
REMY COINTREAU USA INC. 2008-2009 $ 7,032,821.38 0.69%
CAPITAL WINE & SPIRITS 2008-2009 $ 37,819,784.20 3.73%
WHITE ROCK DISTILLERIES 2008-2009 $ 15,925,879.32 1.57%
BANFI PRODUCTS CORPORATION 2008-2009 $ 14,124,707.82 1.39%
SUTTER HOME WINERY 2008-2009 $ 14,381,248.01 1.42%
Fiscal Year
Supplier Name Fiscal Year Percent of COGS
Payment
BACARDI USA INC. 2009-2010 $ 67,263,103.22 6.35%
BROWN FORMAN 2009-2010 $ 50,613,490.40 4.78%
REMY COINTREAU USA INC. 2009-2010 $ 7,911,959.34 0.75%
CAPITAL WINE & SPIRITS 2009-2010 $ 38,317,957.26 3.62%
WHITE ROCK DISTILLERIES 2009-2010 $ 21,435,297.82 2.02%
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BANFI PRODUCTS CORPORATION 2009-2010 $ 16,606,904.35 1.57%
SUTTER HOME WINERY 2009-2010 $ 15,255,869.66 1.44%
Fiscal Year
Supplier Name Fiscal Year Percent of COGS
Payment
BACARDI USA INC. 2010-2011 $ 61,685,074.98 5.71%
BROWN FORMAN 2010-2011 $ 47,563,997.04 4.40%
REMY COINTREAU USA INC. 2010-2011 $ 7,305,972.37 0.68%
CAPITAL WINE & SPIRITS 2010-2011 $ 39,033,604.40 3.61%
WHITE ROCK DISTILLERIES 2010-2011 $ 19,421,875.69 1.80%
BANFI PRODUCTS CORPORATION 2010-2011 $ 16,521,319.81 1.53%
SUTTER HOME WINERY 2010-2011 $ 14,909,694.70 1.38%
Fiscal Year
Supplier Name Fiscal Year Percent of COGS
Payment
BACARDI USA INC. 2011-2012 $ 60,866,013.23 5.31%
BROWN FORMAN 2011-2012 $ 48,337,155.48 4.22%
REMY COINTREAU USA INC. 2011-2012 $ 9,765,846.17 0.85%
CAPITAL WINE & SPIRITS 2011-2012 $ 42,274,675.76 3.69%
WHITE ROCK DISTILLERIES 2011-2012 $ 25,582,535.77 2.23%
BANFI PRODUCTS CORPORATION 2011-2012 $ 16,385,912.23 1.43%
SUTTER HOME WINERY 2011-2012 $ 18,394,480.35 1.61%
1
Members of TheAlliance
2
Manufacturers represented by Capital in Pennsylvania
* The spreadsheet above is only able to detail approximately 86% of PLCB inventory, as the remaining
percentage is made up of small purchases.
29. In an effort to condense marketing efforts and maximize sales and product
exposure, several manufacturers/producers of wines, spirits and malt/brewed
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beverages have formed partnerships for marketing purposes; one such partnership
is “The Alliance.”
a. The Alliance is comprised of wine/spirit suppliers: Bacardi USA (“Bacardi”);
Brown Forman; and Remy Cointreau (“Remy”).
b. The Alliance was established by Bacardi, Brown Forman, and Remy to “re-
shape” their route to market in order to provide greater service and access to
the consumer.
c. The goal of The Alliance was/is to create a way for Bacardi, Brown Forman,
and Remy to leverage their scale and profitability in order to secure
dedicated resources.
30. The Alliance is a United States program and is focused on distribution and a
combined portfolio in an effort to compete with other suppliers.
a. The Alliance covers twenty-six (26) markets, which include the state of
Pennsylvania.
b. Within Pennsylvania, The Alliance is represented by Capital Wine &
Spirits/Charmer Sunbelt Group.
31. Bacardi was founded in 1862, with Bacardi USA being established in New York City
in 1944. Bacardi USA relocated to Miami in 1964.
a. Bacardi reports worldwide sales of $5.5 billion; Bacardi fiscal year recap for
Pennsylvania included a PLCB Rolling 12 Market Profit of $113,127,361.
b. The total Bacardi portfolio cases sold in Pennsylvania was reported at
642,870.
c. Bacardi’s total Pennsylvania marketing budget was $5.4 million.
32. Brown Forman was founded in 1870 and is one of the largest American owned wine
and spirit companies in the world, and is among the top ten largest global spirits
companies.
a. Brown Forman reported $3.2 billion annual net spirit and wine sales for
Fiscal Year 2009.
b. Brown Forman reported PLCB Rolling 12 Market Profit of $77,066,137.00.
c. The total Brown Forman portfolio cases sold in Pennsylvania was
390,415.00.
d. Brown Forman’s total Pennsylvania marketing budget was $2,582,120.00.
33. Remy is a two-hundred eighty-eight (288) year old company based in Paris, France,
with global sales reported of over $1 Billion.
a. Remy USA is headquartered in New York, and it was established in 1981.
b. Remy USA reports to have spent approximately $983,500.00 in SPA support
for sales programs during the 2011-2012 fiscal year; and an additional
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$400,000.00 in marketing support for the Pennsylvania marketplace
annually.
c. Total estimated expenditures for marketing in Pennsylvania total
$1,383,500.00 or approximately $23.00 on every case of beverage sold in
the State of Pennsylvania.
34. Capital Wine and Spirits representatives interacting most often with PLCB officials
include the following:
Mark Littles, President, Capital Wine and Spirits
Christina Desmond, Director of Marketing and Business Analytics
Rob Sirota, General Manager, Alliance Division of Capital Wine and Spirits
Kevin McCarty, Vice-President of Compliance and Administration of Capital
Wine and Spirits
Tim Kilcullen, Vice President Wine and Education, Capital Wine and Spirits.
35. Allied Beverage Group, LLC (“Allied”) was created by the mergers of The Baxter
Group, Inc., F&A Distributing Company and The Jaydor Corporation.
a. Allied reports to be New Jersey’s largest and most comprehensive wine and
spirits distributor and ranks among the ten largest distributors in the United
States.
b. Allied also operates subsidiary Majestic Wine & Spirits, USA, LLC
(“Majestic”), which is a Pennsylvania brokerage and vendor/vendor of record
for products sold to the PLCB.
1. As a broker/vendor, Majestic provides merchandising and promotional
services for several major suppliers of alcoholic beverages.
2. Majestic reports to be the PLCB’s highest volume distributor of
“special liquor orders.”
36. As a broker and vendor/vendor of record for products sold to the PLCB, Allied’s
and/or Majestic’s sales account for between approximately 1.51% to 2.18% of PLCB
total Cost of Goods Sold during the last five (5) years.
a. A detailed list of Majestic’s business with the PLCB is detailed below:
Fiscal Year
Supplier Name Fiscal Year Percent of COGS
Payment
MAJESTIC WINE AND SPIRITS
2007-2008 $15,623,508.91 1.66%
MAJESTIC WINE AND SPIRITS 2008-2009 $15,267,768.10 1.51%
2009-2010 $16,454,785.45 1.55%
MAJESTIC WINE AND SPIRITS
2010-2011 $16,973,020.65 1.57%
MAJESTIC WINE AND SPIRITS
2011-2012 $25,000,032.79 2.18%
MAJESTIC WINE AND SPIRITS
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37. Majestic’s primary contacts with PLCB officials and employees are Chris Papariello
and Edward Murray.
a. Papariello is Executive Vice-President of Majestic.
b. Murray serves as Majestic’s Eastern Regional Manager.
38. Executives and marketing representatives from vendors supplying products to the
PLCB would meet with PLCB officials and employees to market products.
a. Those representatives offered gifts and hospitality to PLCB
[representatives], including Stapleton.
b. These items, including golf events, meals, and hospitality, were offered when
listing/delisting of [products] was occurring.
c. Items of value were routinely provided to PLCB officials who were in
discussion [sic] making positions regarding product selection and placement.
39. As the Chairman of the PLCB, Stapleton interacted and met with suppliers and
brokers of wine and spirits for the PLCB, including representatives of Capital,
Southern, Majestic (Allied Beverage), and White Rock Distilleries, a vendor
represented by Capital and Jim Bean Global.
a. Stapleton would meet with suppliers/brokers at the offices of the PLCB, store
openings, golf outings, and dinner meetings at restaurants.
b. Individuals that Stapleton as the PLCB Chairman had specific dealings with
from the above listed entities included: Mark Littles, President of Capital
Wine & Spirits; Cristina Desmond, Director of Marketing and Business
Analytics for Capital Wine & Spirits; Tricia Brungo, Control State Manager
for White Rock Distilleries; Mark Sweeney, Vice President of Sales in
Pennsylvania for Diageo; Christopher Papariello, the Executive Vice-
President of Majestic Wine and Spirits; Erin “Red” Schiller, Jim Bean Global;
and Brad Waxman, Southern Wine and Spirits.
c. These individuals and other vendor marketing representatives provided
Stapleton with gifts, meals, alcohol donations and golf outings during his
tenure with the PLCB.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT STAPLETON
SOLICITED WINE AND/OR SPIRITS FROM PLCB VENDORS FOR USE BY THE
KEYSTONE WEEKEND AT A TIME WHEN STAPLETON WAS RESPONSIBLE FOR
APPROVING PLCB VENDOR LISTINGS/DELISTINGS.
40. The Keystone Weekend, Inc. (“Keystone Weekend”) is a 501(c)(3) non-profit
corporation established by Stapleton and his then wife, Kelly Beaudin Stapleton.
a. Creation documents for the Keystone Weekend were filed with the
Pennsylvania Department of State, Corporation Bureau, on February 7,
2008.
1. Entity number 3787530 was assigned to the Keystone Weekend by
the Pennsylvania Department of State.
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2. The registered office address for the Keystone Weekend with the
Pennsylvania Department of State is 1825 Delancey Street,
Philadelphia, Pennsylvania 19103.
41. Stapleton has been an officer/director for the Keystone Weekend since its inception
in 2008.
a. The Keystone Weekend is a business with which Stapleton is associated.
b. Pursuant to a Pennsylvania Supreme Court case, Rendell v. Pa. State Ethics
Commission, 983 A.2d 708 (Pa. 2009), the term “business,” as defined by
Pennsylvania's Public Official and Employee Ethics Act, 65 Pa.C.S. § 1102,
should be interpreted to include non-profit entities.
42. The genesis of the Keystone Weekend is an annual, multi-day event, consisting of
panel discussions to foster the free exchange of ideas on significant issues
affecting Pennsylvania society.
a. The Keystone Weekend is a private function and can only be attended by
invitation.
1. Although an invitation only event, there is a registration fee for those
planning to attend.
2. The registration fee does not include the cost of transportation to or
from the Keystone Weekend or lodging.
43. The Keystone Weekend publishes its Mission Statement as follows:
[Being dedicated] to bringing together innovative leaders from a
variety of disciplines such as business, government, academia, the
arts, finance, sports and entertainment to promote a lively exchange
of ideas, experiences and visions in response to significant issues of
the day and to promote innovation which will positively impact the
lives of individuals throughout the Commonwealth of Pennsylvania,
and across the nation.
a. The Keystone Weekend website included an e-mail contact for Patrick
Stapleton as pstapleton@state.pa.us.
1. This was Stapleton’s Commonwealth e-mail address.
b. Keystone Weekend attendees have included governors, United States
senators and congressman, mayors, state legislators, college presidents,
corporate chief executive officers, philanthropists, leaders in the arts and
humanities, physicians and scientists.
44. Meals, including meals prepared by celebrity chefs, and alcoholic beverages are
provided as part of the Keystone Weekend.
45. From 2008 through 2012, the Keystone Weekend held annual events at the Hotel
Hershey in Hershey, Pennsylvania.
a. Annually, event arrangements were handled between Stapleton and/or his
designees and representatives from the Hotel Hershey.
Stapleton, 12-027
Page 15
46. For years 2008 through 2012, Keystone Weekend events were held at the Hotel
Hershey on the following dates:
Year Dates
2008 April 25, 2008—April 27, 2008
2009 May 7, 2009—May 10, 2009
2010 May 6, 2010—May 9, 2010
2011 September 21, 2011—September 26, 2011
2012 September 19, 2012—September 23, 2012
47. Keystone Weekend LLC, while Stapleton was Chair of the PLCB, accepted bulk
delivery/supplied alcoholic beverage(s) from vendors of the PLCB for utilization by
attendees at the Keystone Weekend.
a. Business records of the Hotel Hershey reflect that wine and spirits were
“donated” for Keystone Weekend events held in 2008 through 2011.
1. Vendors donated wine and spirits that were served during the course
of Keystone Weekend, including scheduled receptions and dinner
events.
b. Keystone Weekend Banquet Event Orders include the name(s) of wine and
spirit companies credited with donations as part of Keystone Weekend event
functions.
c. Stapleton utilized his legal assistant, Kristine Francis, from his private law
practice to coordinate the Keystone events.
1. Stapleton also discussed Keystone Weekend with members of the
PLCB staff, including Faith Diehl, Chief Counsel to the PLCB.
2. Diehl and other PLCB officials/staff often attended Keystone
Weekend events.
48. Keystone Weekend events included donated wine and/or spirits served for the
following purposes in 2010 and 2011:
a. Wine Tastings
1. 2010:
a. Wine tasting in the Blue Mountain Room with wine purveyor
providing its own wine on 5/7/10.
i. The specific purveyor was not identified.
2. 2011:
a. Wine tasting in the Castilian Room on 09/23/11 with wine
purveyor providing its own wine to include $20.00 per bottle
corkage fee.
i. The specific purveyor was not identified.
b. Meals, and/or beverages:
1. 2010:
Stapleton, 12-027
Page 16
a. Castilian Room 8:00 p.m.–9:00 p.m. Quality Wines of Spain
donated dinner wines with $8.00 per person corkage fee.
i. The specific wines served were not identified.
b. Celebrity chef appearance in the Castilian Room 8:15 p.m.–
10:00 p.m., A Taste of Spain dinner.
2. 2011:
a. Castilian Room 7:50 p.m.–10:00 p.m. Majestic Wine and
Spirits donated dinner wines with $2,500.00 flat rate
conference corkage fee.
i. Specific wines provided by Majestic Wine and Spirits
are detailed below.
b. Celebrity chef appearance in the Castilian Room 7:50 p.m. –
10:00 p.m. (dinner event).
c. Other alcohol services:
1. 2010:
a. Self-serve bar in the Milton Hershey suite with all alcohol to be
provided via donation with a $15.00 per bottle corkage fee.
i. The self-serve bar was left set up from Thursday, May
6, 2010, at 7:00 p.m. until Sunday, May 9, 2010, at
noon.
2. 2011:
a. Hospitality suite in the Milton Hershey parlor with all alcohol to
be donated.
b. Hospitality bar (off property full bar) with delivery of donated
alcohol from Allied Beverage. In 2010 and 2011, Keystone
Weekend LLC paid the corkage fees associated with Keystone
Weekend.
49. Electronic communications between Stapleton and/or representatives acting on
Stapleton’s behalf and PLCB vendors detail the dialogue as to donations being
provided for the 2011 Keystone Weekend.
a. Business records of Majestic Wine and Spirits include multiple email
communications in relation to the 2011 Keystone Weekend.
1. Multiple email communications regarding the 2011 Keystone
Weekend were supplied spanning the date range of August 3, 2011,
through September 30, 2011, as summarized below.
b. Business records of Charmer Sunbelt Group (Capital Wine & Spirits) include
multiple email communications in relation to the 2011 Keystone Weekend.
Stapleton, 12-027
Page 17
1. On August 24, 2011, at 3:24 p.m., Francis emailed Rachel McCoach
of Charmer-Sunbelt at Stapleton’s direction regarding the wine and
spirits donation for the Keystone Weekend.
a. Dialogue captured in the email follows:
I spoke to PJ [Stapleton] and he said to provide
enough for two, 3-hour cocktail receptions (30
people/75people). I hope that helps – LOL. I cc’d
Donna Balmer and Ben Irwin from Hershey Hotel
on this email since they will be handling the
delivery. If you could send me a list of what your
[sic] sending over, that would be great! Let me
know if you need more information.
b. McCoach replied to Francis at 3:28 p.m. on August 24, 2011,
indicating that she was “not sure what the products will be just
yet, but I will get to work on finding sponsors. I’ll get back in
touch with you when I have confirmed the items.”
c. The alcohol donation for this event was confirmed in an email
sent September 1, 2011, at 9:17 a.m. from Rachel McCoach
(Charmer-Sunbelt) to Kristine Francis. In that email, McCoach
indicated to Francis that she “just wanted to confirm our
product donation for this event. Please see the below list of
items and let me know if you have any questions.”
d. Wines identified by McCoach in her September 1, 2011, email
were as follows:
Red wine:
Sonoma Cutrer Pinot Noir – 9 bottles
Bearboat Syrah – 9 bottles
White wine:
Sonoma Cutrer Russian River Chard – 9 bottles
Bearboat Sauvignon Blanc – 9 bottles
Spirits:
Vodka – Grey Goose (12 bottles)
Gin – Bombay Sapphire (2 bottles)
Rum – Bacardi Superior (2 bottles)
Scotch – Macallan 12Yr (2 bottles)
Bourbon – Woodford Reserve (2 bottles)
Tequila – Herrandura Anejo (2 bottles)
Cognac -Remy VSOP (2 bottles)
c. In a September 12, 2011, e-mail, Mark Littles, President of Capital Wine and
Spirits, advised Stapleton as follows:
By the way, the wine and spirits for Keystone Weekend is taken care of.
Speak soon.
Mark
Stapleton, 12-027
Page 18
50. Stapleton personally and/or [Stapleton’s representatives,] at his direction, accepted
donations of alcohol from PLCB vendors for the 2011 Keystone Weekend which
were valued at in excess of $1,581.51 as detailed below:
a. Majestic Wine & Spirits:
Inv. No. Inv. Product Desc Size Quantity/Type Unit Net
Date No. Amount Amount
295715 08/30/11 5259147 Baron Fini Pn Grg 750ML 2/Cases $80.76 $161.52
5275041 R. Bilbao Crianza* 750ML 1/Case $79.91 $79.91
4042241 Vidal Flry Cdr Ros* 750ML 2/Cases $86.59 $173.18
5259147 Baron Fini Pn Grg 750ML 2/Bottles $6.73 $13.46
203235 09/14/11 4042241 Vidal Flry Cdr Ros 750ML 2/Bottles $7.22 $14.44
315459 09/14/11 5275042 R. Bilbao Crianza 750ML 2/Cases $79.91 $159.82
Total $341.12 $602.33
*Indicates one hundred percent bill back to supplier
b. Capital Wine & Spirits/Alliance Group:
CWS Inv. CWS Inv. Supplier Product Product Units Total Description
Number Date Billed Obtained Cost Cost*
5200001116 09/30/11 Brown Forman Woodford $21.45 2 $45.47 Keystone
Spirit RSV $25.75 2 $54.59 Weekend Event
Samples Only Bourbon $100.06
Herradura
Tequila
Anejo
5200001117 09/30/11 Brown Forman Son Cutrer P $19.18 9 $183.01 Keystone
Noir $11.95 9 $113.99
Son Cutrer $297.00
Chard
5200001194 09/30/11 Bacardi Grey Goose $16.47 12 $209.50 Keystone
Vodka $14.16 2 $30.02 Weekend Event
Bombay Gin $8.72 2 $18.49
Sapphire $258.01
Bacardi Rum
Superior
5200001202 09/30/11 Remy Remy Martin $21.06 2 $44.64 Keystone
Cointreau USA Cogn VSOP $10.75 9 $102.56
BearBoat $147.20
Syrah
1800015859 10/31/11 Remy Bearboat $6.99 9 $62.91 Keystone
Cointreau USA Sauv Blc $51.99 2 $103.98 Weekend
(Illegible) $176.91** Event,
Scotch samples
**[sic] purchased @
store
Total $979.18
*Includes sales tax
Stapleton, 12-027
Page 19
51. Between 2008 and 2011, alcohol was donated to the Keystone Weekend by PLCB
vendors at no charge to Stapleton and/or the Keystone Weekend.
a. The quantities and sources for all alcohol donations to the 2008–2010
Keystone Weekends were not ascertainable.
b. Executives from Capital Wine and Spirits, Majestic and Southern Wine &
Spirits provided sworn statements to the Investigative Division admitting that
quantities of alcoholic beverages were annually provided to the Keystone
Weekend.
1. For the 2009 event, Southern donated and delivered fifty-one (51)
cases of wine including: 2007 Sauvignon Blanc, 2007 Friulano, 2006
LaMozza Morellino.
2. Quality of Wines of Spain provided an undetermined quantity of wine
for the 2010 event.
3. Allied Beverage (Papariello) provided wine/spirits for the 2011 event.
52. Keystone Event records from the Hotel Hershey document the highest number of
plate counts per year regarding meals to be served as follows:
Year Plate Count
2010 100
2011 90
53. The minimum value associated with bottles of wine and/or spirits donated to the
2011 Keystone Weekend event by PLCB vendors totaled at least $1,581.51.
54. On or about August 23, 2011, Papariello and Stapleton attended a dinner at Zahav
Restaurant, located in Philadelphia, prior to the 2011 Keystone Weekend.
a. Papariello paid for dinner expenses totaling $201.96 for him and Stapleton at
Zahav, on August 23, 2011.
1. Papariello claimed this dinner as a business expense.
b. Stapleton’s 50% share of the dinner expense was $100.98.
c. Stapleton did not reimburse Papariello for any portion of Stapleton’s dinner
expense; however, Stapleton paid for cocktails before dinner and parking.
Stapleton also drove Papariello to and from the dinner.
55. Stapleton provided a statement to Commission investigators on July 15, 2013,
during which Stapleton provided the following information:
a. Alcohol for the 2008 through 2011 Keystone Weekend events had been
donated by combinations of various vendors over the years including Capital
Wine & Spirits, Southern Wine & Spirits and Majestic Wine and Spirits.
b. Stapleton and/or his representatives at his direction informed vendors of
other vendors donating alcohol to the events and inquired as to their interest
in supplying donations as well.
Stapleton, 12-027
Page 20
c. Stapleton and/or his representatives at his direction informed the vendors of
the amount of alcohol needed to accommodate “x” number of individuals.
d. In relation to questions regarding his solicitation and acceptance of alcohol
for Keystone Weekend and potential Ethics Act implications, Stapleton
stated that he did not know that such donations were improper but, “if that’s
a violation, that’s a violation.”
1. Stapleton asserted that these same vendors routinely donate to
charities and government events, including the past inaugural events
of Pennsylvania governors.
2. Stapleton has loaned Keystone Weekend LLC substantial monies,
goods and services (in excess of $10,000) and has not been repaid.
56. Employees of the PLCB were authorized to attend the Keystone Weekend events
on Friday, September 23, 2011. Employees were not required to submit leave to
attend the event.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT STAPLETON
ACCEPTED OFFERS FROM A PLCB VENDOR TO PARTICIPATE IN THE 2010 AND
2011 AT&T PRO-AMS AT/OR ABOUT TIMES WHEN STAPLETON WAS RESPONSIBLE
FOR APPROVING LISTINGS/DELISTINGS AND PURCHASES WHICH INCLUDED
PRODUCTS FROM THE OFFERING VENDOR.
57. In 2010 and 2011, Capital Wine and Spirits invited Stapleton and members of the
PLCB to participate in Pro-Am golf events occurring at the Aronimink Golf Club.
a. Aronimink Golf Club is a private country club located at 3600 St. Davids
Road, Newtown Square, Pennsylvania 19073.
b. The golf club has a championship golf course that is rated as one of the top
golf courses in the United States.
c. Mr. Stapleton is a member of Aronimink Golf Club, and was a member in
2010 and 2011.
58. The AT&T National Golf Tournament (“AT&T Tournament”) was held at Aronimink
Golf Club during 2010 and 2011.
a. The AT&T Tournament was part of the Professional Golf Association (“PGA”)
Tour, in which weekly tournaments are held across the country.
b. The AT&T Tournament at Aronimink Golf Club was managed and organized
by the Tiger Woods Foundation for the PGA.
1. The Tiger Woods Foundation was established in 1996 by Tiger
Woods and his father, Earl Woods, to create and support community-
based programs that improve the health, education and welfare of all
children in America.
2. One of the programs supported was the AT&T Tournament.
59. The AT&T Tournament is normally held from Monday through Sunday.
Stapleton, 12-027
Page 21
a. From Monday through Wednesday, Pro-Am Tournaments are held, in which
amateurs will play along with a professional golfer for a fee.
b. The actual PGA golf tournament is held from Thursday through Sunday.
c. As part of the AT&T Tournament held at Aronimink Golf Club in 2010 and
2011, Pro-Am Tournaments were held Monday through Wednesday.
60. Costs in association with playing in a PGA Pro-Am event varied depending on
whether or not a golfer was sponsored.
a. Sponsors of Pro-Am events are generally provided with passes to participate
in the Pro-Am event.
b. The fees to play in Pro-Am events varied by day of week and accompanying
professional golfer.
c. The fees could range from $1,200.00 to $9,500.00.
61. When the AT&T Tournament was held at Aronimink Golf Club in 2010 and 2011,
the Tiger Woods Foundation, in conjunction with the PGA Tour, organized and
managed the tournament.
a. Neither Aronimink Golf Club nor its members played any role in the
tournament, nor were they given the opportunity for any discounts that
included playing in the Pro-Am.
62. As part of managing and organizing the AT&T Tournament held at Aronimink Golf
Club in 2010, the Tiger Woods Foundation offered sponsorships to various
corporations and businesses.
a. One of the sponsors of the Tournament was Bacardi, USA.
63. Bacardi, USA is a division of Bacardi Limited, the largest privately held family
owned spirits company in the world.
a. Capital Wine and Spirits serves as a broker for Bacardi in Pennsylvania.
64. In 2010, Bacardi, USA donated approximately $140,000.00 to sponsor multiple
Tiger Woods Charity Golf Events in the United States, which included the AT&T
Tournament held at Aronimink Golf Club.
a. As part of being a sponsor for events involving the Tiger Woods Foundation
in 2010, three (3) tickets were provided by Bacardi, USA to its broker in
Pennsylvania (Capital Wine & Spirits) to participate in the AT&T Pro-Am
held at Aronimink Golf Club.
65. As a vendor of the PLCB, Capital Wine & Spirits--broker for Bacardi, USA--invited
Stapleton, along with PLCB Board Member Robert Marcus and PLCB CEO Joe
Conti, to participate in the 2010 AT&T Pro-Am held at Aronimink Golf Club.
a. Capital’s President, Mark Littles, provided the invitation to Stapleton,
Marcus, and Conti at a time when Capital Wine & Spirits served as broker
for multiple products listed/pending listing before the PLCB.
Stapleton, 12-027
Page 22
b. Littles, Stapleton, Conti and Marcus are all experienced golfers, with golf
handicaps established by the United States Golf Association.
66. Stapleton, Joe Conti, PLCB CEO, and Robert Marcus, PLCB Member, played in the
Pro-Am at the AT&T Tournament on June 28, 2010, at Aronimink Golf Club.
67. The following packaged benefits were included in the 2010 Pro-Am:
Stapleton, 12-027
Page 23
Package Benefits
One (1) playing spot in the Aronimink Pro-Am on Monday, June 28, 2010,
with a PGA Tour Pro on the tournament course (1 professional, 4 amateurs);
One (1) Pro-Am gift package – valued at $197.62 each;
Food and beverage throughout the Monday Pro-Am event, including
breakfast and a reception to follow play;
One (1) Aronimink Pro-Am Badge (good for admission all week to the
clubhouse/grounds/locker room access on Monday only);
One (1) Aronimink Pro-Am guest badge (good for admission all week into
clubhouse/grounds)
One (1) clubhouse parking credential (valid Monday only)
a. Stapleton asserts that he did not avail himself of the Pro-Am gift package.
68. Capital Wine & Spirits records detailing cash receipts for the month of July 2010,
document cash deposits from Stapleton, Conti, and Marcus for participation in the
2010 AT&T Pro-Am as shown in the chart below:
Date Name Description Payment Method Amount
07/08/2010 Stapleton PLCB Donation Cash $160.00
07/08/2010 Conti PLCB Donation Cash $200.00
07/08/2010 Marcus PLCB Donation Cash $100.00
a. The payments received by Capital Wine & Spirits were subsequently
donated to the American Diabetes Association.
69. In his statement to the Commission on July 15, 2013, Stapleton said that he
provided $160 as payment for the 2010 AT&T Pro-Am. Stapleton estimated the
approximate cost of the value of his round of golf based on his membership at
Aronimink and that he did not avail himself of the full benefits package.
70. In 2011, Bacardi, USA donated approximately $80,000.00 to sponsor multiple Tiger
Woods Charity Golf Events in the United States, which included the AT&T
Tournament held at Aronimink Golf Club.
a. As part of being a sponsor for events involving the Tiger Woods Foundation
in 2011, three (3) tickets were provided by Bacardi, USA to its broker in
Pennsylvania (Capital Wine & Spirits) to participate in the AT&T Pro-Am
held at Aronimink Golf Club.
b. In addition to the three (3) tickets to play in the Pro-Am in 2011, Bacardi
received many of the same benefits that it had received in 2010.
71. As a vendor of the PLCB, Capital Wine & Spirits--broker for Bacardi, USA--invited
Stapleton and Conti to participate in the 2011 AT&T Pro-Am held at Aronimink Golf
Club.
a. Capital’s President, Mark Littles, provided the invitation to Stapleton and
Conti at a time when Capital Wine & Spirits served as broker for multiple
products listed/pending listing before the PLCB.
Stapleton, 12-027
Page 24
72. Leading up to the 2011 AT&T Tournament, Mark Littles and Stapleton exchanged
the following emails:
Littles to Stapleton
April 15, 2011, 3:03 p.m.
Hi PJ,
Hope all is well with you and you are getting ready for a good weekend!
Great news…Grey Goose is sponsoring the AT&T golf event at your home course
again this year and they would like for you and I to take part in the Golf Pro Am
th
on Wednesday June 29.
Please let me know if you can make it and who else you want to join us that
day…Joe Conti?
th
Tuesday night the 28, we can participate to pick our pro and tee time.
Speak with you soon.
Mark
Littles to Stapleton
May 25, 2011, 8:50 a.m.
Hi PJ
Good spending time with you in Arizona and congratulations again!
Having read the sports section of the inquirer this morning, I was reminded of the
Upcoming AT&T Pro Am, as they had Tiger Woods at Aronimink yesterday.
The Pro Am is Wednesday 6/29 and we pick out our time and pro we want at
Dinner the night before, Tuesday 6/28. Bob Marcus cannot join us so I will be
calling Joe Conti to complete the foursome and hopefully he can make it. Bart and
Kevin want to caddy for you and Joe, Hopefully that will not hurt your game too
much…
Mark
Stapleton to Littles
May 25, 2011, 7:29 p.m.
Can’t hurt my weak game. Looking forward to it.
Littles to Stapleton
June 20, 2011 3:38 p.m.
Hi PJ
Hope you had a good fathers day and got to watch some of the US Open.
We have a packet for you for the Pro Am next week….passes, parking, invites,
etc. along with a Grey Goose golf bag from Bacardi if you can use it…
Kevin and bart are going to be in Harrisburg on Wednesday and will drop off the
Packet. If you can use the golf bag, we can bring to Pro Am.
See you next week.
Thanks,
Mark
Stapleton to Littles
June 20, 2011, 6:37 p.m.
Thx Mark. Probably will not need the bag.
73. Stapleton played in the Pro-Am at the AT&T Tournament on Wednesday, June 29,
2011, at Aronimink Golf Club.
74. The following packaged benefits were included in the 2011 Pro-Am:
Package Benefits
Stapleton, 12-027
Page 25
One (1) playing spot in the AT&T national Pro-Am on Wednesday, June 29,
2011 with a PGA Tour Pro on the tournament course (1 professional, 3
amateurs);
One (1) Pro-Am VIP gift package – valued at $487.70 per player;
Food and beverage throughout the Wednesday Pro-Am pairings reception;
One (1) Contestant badge (that allows you inside the ropes on Wednesday
during your round and is also good for admission all week to the
clubhouse/grounds;
One (1) Pro-Am guest badge (good for admission all week to the
clubhouse/grounds);
One (1) clubhouse parking credential (valid Wednesday only).
a. Stapleton asserts that he did not avail himself of the Pro-Am VIP gift
package.
75. Capital Wine and Spirits records did not reflect any payment by Stapleton to Capital
Wine & Spirits in association with Stapleton’s playing in the 2011 AT&T Pro-Am.
a. Stapleton asserted [that he] issued payment to Littles in the amount of
$300.00.
b. Capital records have no evidence to support Stapleton’s claim.
c. Stapleton has provided ATM withdrawal receipts to corroborate his payment
of $300.
1. Stapleton estimated the approximate cost of the value of his round of
golf based on his membership at Aronimink.
THE FOLLOWING FINDINGS RELATE TO STAPLETON’S RECEIPT OF GIFTS AND
HOSPITALITY FROM VENDORS IN ASSOCIATION WITH GOLF OUTINGS/EVENTS
ATTENDED WHILE STAPLETON, AS A MEMBER AND CHAIRMAN OF THE PLCB,
WAS RESPONSIBLE FOR APPROVING LISTINGS/DELISTINGS AND PURCHASES OF
ALCOHOLIC BEVERAGE, WHICH INCLUDED PRODUCT FROM THE
VENDOR/SUPPLIERS SPONSORING THE OUTINGS.
76. Between 2009 and 2011, Capital organized golf outings which included officials and
management employees of the PLCB.
a. Stapleton was one of the PLCB employees/officials invited to these events.
77. Robert Sirota is employed as the General Manager, Alliance Division, for Capital
Wine and Spirits.
a. As General Manager, Sirota serves as the direct liaison between the Alliance
suppliers and Capital Wine and Spirits.
b. Sirota reports directly to Mark Littles, President, Capital Wine and Spirits.
78. In or about 2009, the concept for an Alliance Golf Open was conceived as a
collaborative effort between Sirota and members of the Alliance.
Stapleton, 12-027
Page 26
a. The golf outing was organized as a means by which Capital Wine and Spirits
and the Alliance suppliers could strengthen their relationship with the PLCB
and to allow various Alliance senior management officials to have “face time”
with PLCB officials.
79. Sirota served as the Capital Wine and Spirits lead/point of contact in relation to
organization of the Alliance Golf Open.
a. Although Sirota served as the event lead, individuals to be invited from the
PLCB were determined through a collaboration between Sirota, Littles,
Christine Desmond (Director of Marketing and Business Analytics, Capital
Wine and Spirits), and/or the Alliance suppliers.
b. Actual invitations to PLCB officials for the event were made by Littles and/or
Desmond.
80. Alliance Golf Open events were held in 2009, 2010, and 2011.
a. Sirota served as the Capital Wine and Spirits organizer for the event each
year.
b. Invitees to the 2010 and 2011 events were identified in the same manner as
in 2009.
c. Actual invitations for the 2010 and 2011 events were made by the same
individuals as the 2009 Open.
d. Stapleton did not participate in the 2009 Alliance Golf Open.
81. The 2010 and 2011 Alliance Open were one-day events consisting of morning
travel (if necessary), a warm up session, lunch, a round of golf (eighteen holes),
and dinner in the evening.
a. Sirota developed the itinerary for each respective Alliance Open.
b. No specific time slot was designated/reserved for any specific
business/product presentation by Capital Wine and Spirits and/or the
Alliance suppliers.
c. Records do not indicate any business/product presentations were made by
Capital Wine and Spirits and/or the Alliance suppliers at the events.
d. In his statement to the Commission on July 15, 2013, Stapleton asserted that
the event had a business purpose and recalled attending a business
presentation.
e. When pairing golfers, a specific intent was made to pair a PLCB
official/employee with an Alliance/Capital representative.
82. The costs associated with the 2010 and 2011 Alliance Golf Open were borne by the
Alliance suppliers and Capital Wine and Spirits.
a. The total costs of the events were divided into four equal amounts to be paid
by Capital Wine and Spirits, Bacardi, Brown Forman, and Remy.
Stapleton, 12-027
Page 27
83. The 2010 Alliance Golf Open was held at the River Crest Golf Club, 100 Golf Club
Drive, Phoenixville, PA 19460 on July 15, 2010.
a. The roster/itinerary for the 2010 Alliance Open identified the individuals
participating as shown below:
Group No. Player Affiliation
#1 PJ Stapleton PLCB, Board Member/Chairman
Joe Davolio Capital Wine & Spirits: The Charmer Sunbelt Group, Executive
VP Capability Development
Mark Littles Capital Wine & Spirits: The Charmer Sunbelt Group, President
Al Bruni Bacardi USA
Group No. Player Affiliation
#2 Joe Conti PLCB Chief Executive Officer
Kevin McCarty Capital Wine & Spirits: The Charmer Sunbelt Group, VP
Compliance & Administration
Matt Symanski Brown-Forman, Territory Sales Manager
Rob Sirota Capital Wine & Spirits: The Charmer Sunbelt Group, Director of
Alliance Brands
Group No. Player Affiliation
#3 Jim Short PLCB, Director of Marketing
Mike Remitz Remy Cointreau USA, VP/Division Manager
Bart Pio Capital Wines & Spirits, Chairman
Scott Pickford Bacardi USA
Group No. Player Affiliation
#4 Matt Schwenk PLCB, Director of Product Selection
Dave Franke Brown-Forman, State Manager PA/DE
Brad Moser Remy Cointreau USA, Regional Sales Manager
Cristina Capital Wine & Spirits: The Charmer Sunbelt Group, Director of
Desmond Marketing and Business Analytics
1. Fifteen (15) individuals participated in the 2010 Alliance Open,
including three (3) PLCB officials/employees.
b. The itinerary for the event documented the following activities:
11:00 a.m. Warm up / Range-River Crest Golf Club
12:00 p.m. Lunch-Greenside Grille
1:00 p.m. First Group Tee Time
1:10 p.m. Second Group Tee Time
1:20 p.m. Third Group Tee Time
1:30 p.m. Fourth Group Tee Time
th
5:00 p.m. 19 Hole-Cocktails at the Club House Bar
6:00 p.m. Hotel Check In-Hotel Fiesole Skippack, PA
7:00 p.m. Cocktails at Basta Pasta in Skippack
7:45 p.m. Dinner at Parc Bistro in Skippack
84. Records of Capital Wine and Spirits in reference to the July 15, 2010, Alliance Golf
Open documented expenses incurred in the amount of $7,363.00.
a. The document memorializing the cost of the event was updated on July 16,
2010.
b. The invoice documented the expense breakdown as:
Description Costs
Food & Beverage $4,263.00
Golf $1,280.00
Golf Swag Bags $1,600.00
Forecaddies $220.00
Stapleton, 12-027
Page 28
Description Costs
Total $7,363.00
c. The cost of the event to Capital Wine and Spirits and each Alliance supplier
was approximately $1,840.75 ($7,363.00 ÷ 4).
85. Documented expenses associated with the 2010 Alliance Golf Open totaled a
minimum of approximately $7,363.00.
a. Fifteen (15) individuals participated in the 2010 Alliance Golf Open and
incurred expenses totaling $7,363.00. Stapleton issued no personal
payment to Capital Wine & Spirits and/or the Alliance Group for his
participation in the outing.
b. Stapleton asserts that he estimates the value of the golf outing as
approximately $100.00 to $120.00, and that he did not avail himself of the
entirety of the expenses as detailed above.
86. A third Alliance Open was arranged by Capital Wine & Spirits for officials of the
PLCB in 2011.
a. Mark Littles, Capital President extended an invitation to Conti and PLCB
Chairman Patrick Stapleton.
87. Mark Littles of Capital Wine & Spirits sent an email to Conti and Stapleton on March
30, 2011, at 10:53 a.m. which included James Short, Marketing Director of the
PLCB, along with Capital employees Robert Sirota, Cristina Desmond and Kevin
McCarty. The subject of the e-mail was Alliance Meeting and included the
following:
PJ/Joe,
On behalf of our Alliance partners, Bacardi, Brown Forman and Remy, I would like
to Extend an invite to the PLCB Board, Joe, Jim and members of Jim’s team, to an
Alliance Outdoor meeting at Philadelphia CC. We would like to see if either 7/14 or
7/21 would Work for you. The days [sic] agenda would be:
Lunch 12-1
Outdoor Meeting 1-5
Dinner 6-8
This would all take place at Philadelphia CC.
We could secure rooms at Marriott Conshohocken for anyone wanting to stay
overnight.
Please let us know which date works best for you and we can start setting up the
details.
Thank you,
Mark
88. Sirota forwarded an e-mail on June 27, 2011, at 10:26 a.m. to Capital officials
including Littles, Desmond, and McCarty regarding the third Alliance Open which
included confirming the date of July 14 at the Philadelphia County Club.
Stapleton, 12-027
Page 29
a. Desmond responded on June 27 at 11:00 a.m. as follows:
“I have communicated this information to Jim (Short) and Matt (Schwenk).
Kevin (McCarty) and Mark (Littles) should handle Joe (Conti), PJ
(Stapleton), and Hitz.”
1. Doug Hitz is the PLCB Director of Planning and Procurement.
89. Littles sent another e-mail to Conti on June 27, 2011, 11:44 a.m. with the subject
matter “Third Alliance Open–July 14” along with attachments, and included as
follows:
“Joe, here are the details on the Alliance meeting for 7/14. Thanks Mark”
90. The 2011 Alliance Golf Open was held at the Philadelphia Country Club, 1601
Spring Mill Road, Gladwyne, PA 19035 on July 14, 2011.
a. The roster/itinerary for the 2011 Alliance Open identified the individuals
participating as shown below:
Group No. Player Affiliation
#1 PJ Stapleton PLCB, Board Member/Chairman
Mike Leibick
Mark Brown-Forman, Vice President/Director Central States &
Satterthwaite Canada
Mark Littles Capital Wine & Spirits: The Charmer Sunbelt Group, President
Group No. Player Affiliation
#2 Joe Conti PLCB, Chief Executive Officer
Mike Remitz Remy Cointreau USA, VP/Division Manager
Todd Pemble Bacardi USA, Regional Director
Matt Symanski Brown-Forman, Territory Sales Manager
Group No. Player Affiliation
#3 Jim Short PLCB, Director of Marketing
Guillermo Bacardi, V.P./Managing Director - East Commercial Business
Rodriguez Unit
John Higgins Wirtz Beverage Nevada, Sales Manager
Rob Sirota Capital Wine & Spirits: The Charmer Sunbelt Group, Director
of Alliance Brands
Group No. Player Affiliation
#4 Matt Schwenk PLCB, Director of Product Selection
Scott Pickford Bacardi USA
Cristina Capital Wine & Spirits: The Charmer Sunbelt Group, Director
Desmond of Marketing and Business Analytics
Brad Moser Remy Cointreau USA, Regional Sales Manager
Group No. Player Affiliation
#5 Doug Hitz PLCB, Bureau Director
Kevin McCarty Capital Wine & Spirits: The Charmer Sunbelt Group, VP
Compliance & Administration
Dave Franke Brown-Forman, State Manager PA/DE
Rich Byrne Remy Cointreau, Field Marketing Director
1. Twenty individuals participated in the 2011 Alliance Open.
b. The itinerary for the event documented the following activities:
11:00 a.m. Warm up/Range-PCC
11:30 a.m. Lunch-The Terrace
12:40 p.m. First Group Tee Time
12:50 p.m. Second Group Tee Time
Stapleton, 12-027
Page 30
1:00 p.m. Third Group Tee Time
1:10 p.m. Fourth Group Tee Time
1:20 p.m. Fifth Group Tee Time
5:00 p.m.-6:30 p.m. Cocktails on the Terrace
5:00 p.m.-6:30 p.m. Hotel Check In-Conshohocken Marriot
7:00 p.m. Dinner at Philadelphia Country Club on the Terrace
c. The itinerary for the event documented hotel accommodations available at
the Marriott, 111 Crawford Ave, West Conshohocken, PA 19428.
91. PLCB attendees at the event included Short, Conti, Schwenk, Stapleton, and Doug
Hitz, PLCB Bureau Director for Planning and Procurement.
a. Pennsylvania is currently the largest purchaser of wine and spirits in the
United States and is the second largest worldwide. The PLCB owns and
operates over 600 state stores throughout the Commonwealth and is
responsible for the purchase and distribution of all wine and spirits within the
state. PLCB employees attend such events in order to develop relationships
with vendors that supply product to the PLCB.
92. The 2011 Alliance Open was a marketing event sponsored by companies selling
wine/spirits to the PLCB through Capital Wine and Spirits.
a. Activities taking place at the 2011 Alliance Open included lunch, eighteen
holes of golf, cocktails, and dinner. Stapleton asserted that he did not stay
for the entirety of the event.
93. Records of Capital Wine and Spirits in reference to the July 14, 2011, Alliance Golf
Open documented expenses incurred at the Philadelphia Country Club in the
amount of $9,487.96.
a. The banquet invoice generated by the Philadelphia Country Club (Booking
No. 017299) documented a billing date of July 14, 2011.
b. The invoice documented the expense breakdown as:
Recap & Total Costs
Services $2,691.55
Resources $6,037.00
Service Chg $592.14
Sales Tax $167.27
Total $9,487.96
c. Stapleton issued no personal payment that day to Capital Wine & Spirits
and/or the Alliance Group for his participation in the outing.
d. Stapleton asserts that he estimates the value of the golf outing as
approximately $100.00 to $120.00, and that he did not avail himself of the
entirety of the expenses as detailed above.
94. Stapleton asserts that he made a reasonable effort to ascertain the value of his
round of golf and repay the full value of the golf.
a. Stapleton asked one of the individuals associated with hosting the event how
much he owed for the day. The individual responded that Stapleton did not
owe anything, as Stapleton had hosted the individual the prior day for lunch
and golf.
Stapleton, 12-027
Page 31
95. The National Alcohol Beverage Control Association (“NABCA”) was established in
1938, and its mission is representing control state systems in those jurisdictions
that directly control the distribution and sale of beverage alcohol within their
borders.
a. The mission of NABCA is to support member jurisdictions in their efforts to
protect public health and safety and ensure responsible and efficient
systems for beverage alcohol distribution and sales.
b. One of the objectives of NABCA is to cultivate relationships between
member jurisdictions, governmental entities, public health, industry, media
and other organizations to encourage and facilitate communication and
collaboration.
c. The state of Pennsylvania is considered a control state.
d. The PLCB is a member of NABCA.
e. Stapleton is a Past-President of NABCA.
96. NABCA holds conferences each year alternating between the states of Arizona and
Florida.
97. Stapleton, as a Board Member of the PLCB, regularly attended the NABCA
Conferences.
a. All of Stapleton’s expenses for attending conferences are paid for by
NABCA.
1. NABCA, which is funded by the sale of data to the wine/spirit industry
and dues paid by control jurisdictions, reimburses conference
expenses for attendees.
98. Stapleton’s attendance at the NABCA Conferences, in addition to attending official
NABCA events, included playing golf and having dinners which were paid for by
one of the suppliers of the PLCB.
a. Dinners and golf outings would be prearranged usually be e-mail between
Stapleton and PLCB vendor officials.
99. Stapleton attended the 2010 NABCA Conference held in Marco Island, Florida, from
May 15-19, 2010.
100. Stapleton attended the 2011 NABCA Conference held in Phoenix, Arizona on May
11, 2011, and participated in a golf outing at the Arizona Baltimore Golf Club
th
located at 24 Street & Missouri Avenue, P.O. Box 10719, Phoenix, AZ 85064.
a. PLCB Supplier Brown-Forman paid for the cost of the golf outing which
totaled $4,613.04 (approximately $128.14 per person).
b. A total of ten (10) four-member teams played that included Stapleton and
other control state officials.
101. Stapleton received meals sponsored/paid for by a PLCB vendor(s) at the 2011
NABCA Conference.
Stapleton, 12-027
Page 32
a. Expense records of Mark Littles reflect Stapleton attending a dinner on May
13, 2011, at Mastro’s City Hall, along with James Short and Capital
Managers.
b. PLCB members are also reflected as attending a breakfast and drinks event
hosted by Littles on May 15, 2011.
102. Stapleton attended the 2012 NABCA Conference held at the Marco Island Marriott
Golf Resort, Naples, Florida, on May 18 and 19, 2012.
a. Stapleton participated in golf outings on May 18 and 19, 2012, that were
paid for by vendors of the PLCB.
1. The value of the May 18, 2012, golf outing arranged by White Rock
Distributors could not be determined.
2. The value of the May 19, 2012 golf outing arranged by Brown-Forman
was approximately $139.00 per person.
THE FOLLOWING FINDINGS RELATE TO STAPLETON’S GENERAL RECEIPT
OF GIFTS AND HOSPITALITY FROM VENDORS AT A TIME WHEN [HE] MADE
DECISIONS AS TO THE PURCHASING, LISTING, AND DELISTING OF PRODUCT
FROM THOSE VENDORS AND/OR SUPPLIERS.
103. While serving as the Chairman of the PLCB, Stapleton accepted meals/hospitality
and/or gifts from Littles and/or Desmond, representatives of Capital Wine and
Spirits.
a. Littles’ expense summaries document meals/hospitality received and
accepted by Stapleton as detailed in the chart below:
Activity Date Net Amount Description Additional Text
07/21/2010 $460.75 Dinner PLCB New Store opening VIP New Hope, Marsha Browns, PJ Stapleton,
event PLCB Board, Gina Gallo
07/22/2010 $1,354.33 Lunch, Meeting, Dinner PLCB New New Hope PLCB New Store Opening, PJ
Store Opening Stapleton, Joe Conti, Tom Goldsmith, Bob
Marcus, CWS Managers, Golf, Lunch, Dinner
12/15/2010 $642.60 Dinner, Drinks, PLCB Buyers, Dan Elements, Pittsburgh, PLCB Buyers, Infinium,
Ankroyd visit CWS
03/14/2011 $67.24 Lunch Meeting, PJ Stapleton, PLCB Le Castagne
Chairman
05/07/2011 $1,050.16 PLCB Wine Festival Dinner with Barclay Prime, Tom Goldsmith and Wife, Joe
PLCB Board Members Conti and Wife, B. Pio and Wife, L. Sutow and
Wife
05/13/2011 $888.49 Dinner Mastro’s City Hall, Scottsdale, AZ
NACBA, PLCB Members NABCA Meetings
J Short, PJ Stapleton, CWS Managers
05/15/2011 $540.82 Breakfast and Drinks w PLCB Arizona Biltmore
At NABCA 05/10--05/15 PLCB Board Members, Buyer J Short,
CWS Managers / NABCA Meeting
05/25/2011 $2,974.39 PLCB Holiday Presentation Dinner Davios & Parc, Philadelphia, PA
Bacardi/B-F 50% e PLCB Holiday Presentation Dinner
Bill Back 50% to Bacardi and 50% to Brown
Forman
Stapleton, 12-027
Page 33
Activity Date Net Amount Description Additional Text
05/26/2011 $767.52 PLCB Bachanal Dinner Launch, Osteria, PJ Stapleton, CWS Managers, PAFA
PAFA Dinner
b. Stapleton asserts that he was not present and did not avail himself of the
meals and/or hospitality provided on May 7, 2011, May 13, 2011, May 15,
2011 and May 25, 2011.
c. Desmond’s expense summaries documented the purchase of picture frames
on September 14, 2009, in the amount of $172.25, of which one was
provided as a gift to Stapleton.
1. The specific value of the frame received by Stapleton could not be
determined.
2. Desmond documented the expense on her employee expense report
for reimbursement and received reimbursement for said expense.
104. Stapleton accepted the meals/hospitality and gift from Littles and/or Desmond
respectively at a time when Stapleton was responsible for making decisions as a
PLCB Board Member regarding product listing and delisting of products from
suppliers represented by Capital Wine and Spirits.
a. The specific value of the meals/hospitality received by Stapleton from Littles
could not be determined.
b. The specific value of the gift received and accepted by Stapleton from
Desmond, a PLCB vendor representative, could not be determined.
c. Stapleton made no personal payment for the meals/hospitality and/or gifts.
105. Expense reports filed by Brad Waxman (representative of Southern Wine and
Spirits) document Stapleton attending a dinner on or about March 3, 2009.
a. Waxman paid for the meal totaling $385.29.
b. Stapleton asserts that he was not present at this event.
106. While serving in the position of Chairman of the PLCB, Stapleton accepted at least
one meal from Mark Sweeney, a representative of Southern Wine and Spirits at that
time, on September 16, 2011.
a. Written on the receipt in handwriting was “Multi Cultural Meeting and Intro
To PLCB.”
b. Sweeney paid for lunch in the amount of $131.20 for himself, Stapleton, and
four additional attendees on September 16, 2011, at the Continental
Midtown, in Philadelphia, Pennsylvania.
1. Sweeney issued payment for the expenses incurred via use of his
corporate issued credit card.
2. Southern Wine and Spirits employees are permitted to receive
reimbursement from the company for legitimate business expenses
incurred.
Stapleton, 12-027
Page 34
3. Southern Wine and Spirits employees may not receive
reimbursement for personal expenses incurred.
c. Sweeney received reimbursement for the meal expense incurred for
Stapleton and the additional attendees.
107. Stapleton accepted the meal from Sweeney at a time when Stapleton was
responsible for making decisions as a PLCB Board Member regarding product
listing and delisting of products from suppliers represented by Southern Wine and
Spirits.
a. Absent Stapleton’s office as a PLCB Board Member, Stapleton would not
have been in a position to receive the meal from Sweeney, a PLCB vendor
representative.
b. Stapleton made no personal payment for the meal.
108. While serving in the position of Chairman of the PLCB, Stapleton received and
accepted meals/hospitality from representatives of White Rock Distilleries, a
supplier of alcohol/spirits to the Commonwealth.
a. Email transmission from Brungo to Paul Coulombe, White Rock Distilleries
owner/Chief Executive Officer, dated May 9, 2011, at 12:41 p.m. bearing the
subject of “Jim Short Dinner” detailed the following:
1. Hi Paul,
I wanted to confirm with you the details of your smaller dinner with
Jim Short. You will have a limo with White Rock Distilleries in the
window outside the main lobby doors at 7:00 pm. You have a dinner
reservation at Maestro’s City Hall, 6991 East Camelback Road at
7:45 pm for 8 people. I will change the dinner reservation to 5 or 6
people, depending on if you will have a guest. The guests are as
follows: Paul C, Paul D, Cristina Desmond, Kevin McCarty and Jim
Short.
PJ Stapleton
and Mark Littles would like to join you for a cocktail
after dinner that evening. I have copied Sean Doherty on this email,
as he is waiting to hear back from RNDC regarding a few bar
locations in the area.
Please let me know if you have any questions at all.
See you in Phoenix!
Trish
b. The expenses were ultimately paid for by White Rock Distilleries.
109. Stapleton accepted the meals/hospitality from White Rock Distilleries
representatives while Stapleton, as PLCB Chairman, was responsible for making
decisions regarding product listing and delisting of products from suppliers
represented by White Rock Distilleries.
a. The specific value of the meals/hospitality received and accepted by
Stapleton from White Rock Distilleries representatives could not be
determined.
Stapleton, 12-027
Page 35
b. Stapleton made no personal payment for the meals/hospitality and/or gifts.
110. While serving in the position of Chairman of the PLCB, Stapleton accepted the
following from Erin Schiller, a representative of Beam Global Wine and Spirits,
identified by Schiller on his business expense reports as detailed in the chart below:
Date Description of Expense Expense Individuals
Amount Present/Benefactor
07/31/2011 PLCB – Phillies Game @ Aramark $53.75 Stapleton & Daughter
Citizens Bank Park Schiller & Daughter
09/14/2011 Wine & Spirits $395.26 Stapleton
a. Expenses incurred by Schiller as a representative of Beam Global for
attendance at the Philadelphia Phillies game on July 31, 2011, included
$16.50 for parking and $37.25 for meals.
b. Wine and spirits purchased by Schiller as a representative of Beam Global
on September 14, 2011, which were given to Stapleton included the
following:
Description Quantity Price
Skinny Girl Mrgrt 1 $13.99
Maker’s Mark 1 $34.99
S Oak Cab Sauv Alx 1 $48.99
Cruzan 9 Spiced Rum 1 $14.99
Pucker Grape Gone 1 $15.99
Basil Haydens Bourbon 1 $37.99
Effen Vodka 1 $22.99
Laphroaig 18 1 $59.99
Chocolate Shp red 1 $12.99
Ehlers Estate 1886 1 $49.99
Pina CS D’Adamo 1 $34.99
Jim Beam Devils Cut 1 $24.99
Tax $22.38
Total $395.26
c. Schiller issued payment for the expenses incurred via use of his corporate
issued credit card.
d. The expenses were ultimately paid for by Beam Global Wine and Spirits.
111. Stapleton accepted the meal/gifts from Schiller while Stapleton had responsibility
for making decisions as a PLCB Board Member regarding product listing and
delisting of products from Beam Global Wine and Spirits, a supplier of
alcohol/spirits to the Commonwealth of Pennsylvania.
112. In an interview with Commission representatives on July 15, 2013, Stapleton
claimed, in part, the following:
a. Stapleton has become more familiar with the Pennsylvania Liquor Code
since his service ended as a PLCB Member.
1. Stapleton is a licensed attorney within the Commonwealth of
Pennsylvania (PA Attorney ID 38057).
2. Stapleton is a partner in the law firm of Weber, Gallagher, Simpson,
Stapleton, Fires & Newby, L.L.P.
Stapleton, 12-027
Page 36
b. Stapleton was generally aware that acceptance of gifts, gratuities,
hospitality, etc., by PLCB representatives, including Board Members, from
individuals and/or entities having or attempting to secure business with the
PLCB was illegal and therefore prohibited; however, Stapleton was not clear
on the extent/parameters of the prohibitions.
1. Stapleton had conversations with PLCB Chief Counsel Faith Diehl
during which Diehl stated that acceptance of gifts at times was
appropriate and at other times was not.
113. During an interview with Commission investigators on July 15, 2013, Stapleton
provided responses to questions posed regarding the general subject of
acceptance of gifts and hospitality by PLCB representatives as well as his view of
PLCB operations, including, in part, the following:
a. Stapleton was questioned on the appropriateness of PLCB representatives
involved [in] product decisions participating in golf outings with vendors at no
cost to the PLCB representatives.
1. Stapleton responded, “This is how the real world works if it’s not the
PLCB.”
2. Stapleton added that the PLCB is essentially a business and that he
tried to run it as a business during his tenure on the board.
3. Stapleton stated that participation in the golf outings by PLCB
representatives provided exposure to individuals in the industry that
they may not be exposed to otherwise.
4. Stapleton admitted that it was not necessary for PLCB
representatives to meet with vendor representatives on the golf
course but, “it helped.”
b. Stapleton was questioned on his personal knowledge/relationship with any
PLCB vendors prior to his service on the PLCB Board.
1. Stapleton stated that he had no personal relationship with any PLCB
vendors prior to his service on the PLCB Board.
2. Stapleton attempted to maintain relationships that were advantageous
to the PLCB.
114. Stapleton, in his official capacity as a Board Member of the PLCB, was annually
required to file a Statement of Financial Interests (“SFI”) [disclosing] information for
the prior calendar year.
a. Stapleton was required to file an SFI for each year he served as a Board
Member.
115. Statements of Financial Interests were filed with the State Ethics Commission by
Stapleton for calendar years 2007 through 2012.
2012
a. Calendar Year:
Filed: 04/29/13 on form SEC-1 REV. 01/13
2011
b. Calendar Year:
Stapleton, 12-027
Page 37
Filed: 04/27/12 on form SEC-1 REV. 01/12
2010
c. Calendar Year:
Filed: 04/29/11 on form SEC REV. 01/11
2009
d. Calendar Year:
Filed: 04/30/10 on form SEC-1 REV. 01/10
2008
e. Calendar Year:
Filed: Not date stamped, on form SEC-1 REV. 01/09, form dated 04/30/09
1. Amended Filing: 05/07/09 on form SEC-1 REV. 01/09 Amended
Filing
2007
f. Calendar Year:
Filed: 05/01/09, on form SEC-1 REV. 01/08
2007
1. Additional Calendar Year:
Filed: 06/04/09, on form SEC-1 REV. 01/08
116. Stapleton failed to disclose hospitality on his SFI for calendar years 2010 and 2011
as follows:
a. In 2010, Stapleton failed to list [under transportation, lodging and hospitality]
that he played in the AT&T Pro-Am Tournament held at Aronimink Golf Club
as a guest of PLCB suppler, Bacardi USA, for which the value was in excess
of $650.00.
b. In 2011, Stapleton failed to list [under transportation, lodging and hospitality]
that he played in the AT&T Pro-Am Tournament held at Aronimink Golf Club
as a guest of PLCB supplier Bacardi USA, for which the value was in excess
of $650.00.
c. When combined with other hospitality received by the same source
(vendors) in any given calendar year, total hospitality received by Stapleton
may have exceeded the $650.00 reporting threshold.
117. Patrick Stapleton, in his position as Member and Chairman of the PLCB, used the
authority of his office to realize a private pecuniary benefit for himself and a
business with which he is associated (Keystone Weekend) when he accepted gifts,
transportation, lodging, and/or hospitality from vendors and/or brokers and
suppliers of the PLCB at a time when Stapleton was participating in and making
decisions regarding the PLCB's purchase of wine and spirits from those same
vendors and/or brokers and suppliers.
Stapleton, 12-027
Page 38
DescriptionValue
$1,200.00
2010 AT&T Pro Am (Capital)
$1,200.00
2011 AT&T Pro Am (Capital)
$ 965.27
2010 & 2011 Alliance Outings (Capital)
1
$3,004.87
Keystone Weekend 2008-2012
$ 128.14
Golf at 2011 NABCA (Capital)
$ 139.00
Golf at 2102 NABCA (Capital)
$ 172.25
Picture Frame, Cristina Desmond (Capital)
$ 449.01
Hospitality/alcohol Erin “Red” Schiller (Bacardi)
Total$7,258.54
III.DISCUSSION:
As a Member of the Pennsylvania Liquor Control Board (“PLCB”) from
approximately June 17, 1997, through October 5, 2012, Respondent Patrick Stapleton
(also referred to herein as “Respondent,” “Respondent Stapleton,” and “Stapleton,” has
been a public official subject to the provisions of the Public Official and Employee Ethics
Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq.
The allegations are that Respondent Stapleton, as a Member and Chairman of the
PLCB, violated Sections 1103(a) and 1105(b) of the Ethics Act: (1) when he used the
authority of his public position for the private pecuniary benefit of himself, members of his
immediate family, and/or a business with which he and/or members of his immediate family
are/were associated by soliciting from PLCB vendor(s) donations of wine and/or liquor for
events hosted by the Keystone Weekend Inc., an entity with which Stapleton and/or
members of his immediate family are/were associated; (2) when he solicited vendor(s) of
the PLCB to arrange for and provide a celebrity chef(s) for the same event; (3) when he
received hospitality--including but not limited to lunches, dinners, and golf outings (which
included cocktails, meals, greens fees and other amenities)--paid for by PLCB vendor(s),
all at a time when the vendor(s) had an ongoing business/contractual relationship with the
PLCB; and (4) when he failed to disclose on Statements of Financial Interests (“SFIs”) for
the 2010 and 2011 calendar years the receipt of gifts, transportation, hospitality and/or
lodging from vendor(s) of the PLCB.
Pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is
prohibited from engaging in conduct that constitutes a conflict of interest:
§ 1103. Restricted activities
(a)Conflict of interest.—
No public official or public
employee shall engage in conduct that constitutes a conflict of
interest.
65 Pa.C.S. § 1103(a).
The term "conflict of interest" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Conflict" or "conflict of interest."
Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
his holding public office or employment for the private
1 Value for actual determinable value of alcohol donated year 2011 ($1,581.51) and estimated value year
2012 ($1,423.36).
Stapleton, 12-027
Page 39
pecuniary benefit of himself, a member of his immediate family
or a business with which he or a member of his immediate
family is associated. The term does not include an action
having a de minimis economic impact or which affects to the
same degree a class consisting of the general public or a
subclass consisting of an industry, occupation or other group
which includes the public official or public employee, a
member of his immediate family or a business with which he or
a member of his immediate family is associated.
65 Pa.C.S. § 1102.
Section 1103(a) of the Ethics Act prohibits a public official/public employee from
using the authority of public office/employment or confidential information received by
holding such a public position for the private pecuniary benefit of the public official/public
employee himself, any member of his immediate family, or a business with which he or a
member of his immediate family is associated.
Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure
that a person required to file the SFI form must provide.
Subject to certain statutory exceptions not applicable to this matter, Section
1105(b)(6) of the Ethics Act requires the filer to disclose on the SFI the name and address
of the source and the amount of any gift or gifts valued in the aggregate at $250 or more
and the circumstances of each gift.
Subject to certain statutory exceptions not applicable to this matter, Section
1105(b)(7) of the Ethics Act requires the filer to disclose on the SFI the name and address
of the source and the amount of any payment for or reimbursement of actual expenses for
transportation and lodging or hospitality received in connection with public office or
employment where such actual expenses exceed $650 in an aggregate amount per year.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
Stapleton served as a Member of the PLCB from approximately June 17, 1997,
through October 5, 2012. Stapleton served as Chairman of the PLCB from approximately
January 17, 2007, through October 5, 2012.
The PLCB is governed by a three-Member Board. The PLCB regulates the sale of
alcohol in Pennsylvania. In order for an alcoholic beverage to be sold in Pennsylvania, it
must be authorized for sale by the PLCB. The PLCB is the only retail seller of
wine/spirits/beer in the Commonwealth.
The PLCB adds and removes products sold in PLCB retail stores through a process
known as “listing” and “delisting.” The parties have stipulated that the PLCB Director of
Marketing and Merchandising, Chief of the Product Management and Pricing Division, and
Merchandising Pricing Coordinator(s) are usually responsible for evaluating new products.
The Director of Marketing and Merchandising and the Chief of the Product Management
and Pricing Division make the final recommendation to the PLCB Board Members as to
what product(s) should be listed or delisted. PLCB Board Members vote on the entire
recommended new product list without any independent review of the product/support
data.
A manufacturer/supplier of alcoholic beverage products may market its products to
the PLCB directly or through a vendor or broker. The primary vendors providing products
Stapleton, 12-027
Page 40
to the PLCB are: (1) Southern Wine and Spirits (“Southern”); (2) Capital Wine and Spirits
(“Capital”); and (3) Allied Beverage Group, LLC (“Allied”), which has a subsidiary named
“Majestic Wine & Spirits, USA, LLC” (“Majestic”).
Products for which Southern serves as broker and/or vendor/vendor of record
account for approximately 6.43% to 6.85% of the PLCB total Cost of Goods Sold during the
last five (5) years. A list of Southern’s business with the PLCB is detailed in Fact Finding
25 c.
Capital is a member of the “Charmer Sunbelt Group,” a nationwide distributor of
wine, spirits, beer, and other beverages. Products brokered by Capital account for a total
of approximately 19.11% to 22.03% of the PLCB total Cost of Goods Sold during the last
five (5) years. A list of Capital’s business with the PLCB is detailed in Fact Finding 28 b.
In Pennsylvania, Capital/Charmer Sunbelt Group represents a marketing partnership
named “the Alliance,” which is comprised of wine/spirit suppliers Bacardi USA (“Bacardi”),
Brown Forman, and Remy Cointreau (“Remy”). Capital also represents White Rock
Distilleries, a supplier of alcohol/spirits to the Commonwealth of Pennsylvania.
Allied was created by the mergers of The Baxter Group, Inc., F&A Distributing
Company and The Jaydor Corporation. Allied ranks among the ten largest wine and spirits
distributors in the United States. Allied subsidiary Majestic is a Pennsylvania brokerage
and vendor/vendor of record for products sold to the PLCB. Allied’s and/or Majestic’s
sales account for approximately 1.51% to 2.18% of PLCB total Cost of Goods Sold during
the last five (5) years. A list of Majestic’s business with the PLCB is detailed in Fact
Finding 36 a.
Executives and marketing representatives from vendors supplying products to the
PLCB would meet with PLCB officials and employees to market products. Those
representatives offered gifts and hospitality to PLCB representatives, including Stapleton.
These items were offered when listing/delisting of products was occurring. Items of value
were routinely provided to PLCB officials involved with product selection and placement.
As Chairman of the PLCB, Stapleton interacted and met with representatives of
vendors, brokers and suppliers of the PLCB. Stapleton would meet with suppliers/brokers
at the offices of the PLCB, store openings, golf outings, and dinner meetings at
restaurants. Individuals that Stapleton as PLCB Chairman had specific dealings with
included: Mark Littles, President of Capital; Cristina Desmond, Director of Marketing and
Business Analytics for Capital; Tricia Brungo, Control State Manager for White Rock
Distilleries; Mark Sweeney, Vice President of Sales in Pennsylvania for Diageo;
Christopher Papariello, Executive Vice-President of Majestic; Erin “Red” Schiller, Jim Bean
Global; and Brad Waxman, Southern. These individuals and other vendor marketing
representatives provided Stapleton with gifts, meals, alcohol donations and golf outings
during his tenure with the PLCB.
In a private capacity, Stapleton is associated with a 501(c)(3) non-profit corporation
named the “Keystone Weekend, Inc.” (“Keystone Weekend”), which Stapleton and his then
wife, Kelly Beaudin Stapleton, established in 2008. Stapleton has been an officer/director
for the Keystone Weekend since its inception in 2008. The Keystone Weekend is an
annual, private function that can only be attended by invitation. There is a registration fee
for those planning to attend. Meals, including meals prepared by celebrity chefs, and
alcoholic beverages are provided as part of the Keystone Weekend.
PLCB vendors including Capital, Southern and Majestic have donated alcohol to the
Keystone Weekend at no charge to Stapleton and/or the Keystone Weekend. Stapleton
has acknowledged that he and/or his representatives, at his direction, informed vendors of
other vendors donating alcohol to the events and inquired as to their interest in supplying
Stapleton, 12-027
Page 41
donations as well. Stapleton and/or his representatives acting at his direction informed the
vendors of the amount of alcohol needed to accommodate certain number(s) of individuals.
The quantities and sources for all alcohol donations to the 2008–2010 Keystone
Weekends were not ascertainable. For the 2011 Keystone Weekend, Stapleton or others
acting at his direction accepted donations of alcohol from PLCB vendors valued at in
excess of $1,581.51, as detailed in Fact Findings 50 a-b. For the 2012 Keystone
Weekend, the estimated value of the alcohol donated to the Keystone Weekend by PLCB
vendors was $1,423.36. Fact Finding 117.
As a vendor of the PLCB, Capital invited Stapleton, PLCB Board Member Robert
Marcus, and PLCB Chief Executive Officer Joe Conti (“Conti”) to participate in the 2010
AT&T Pro-Am Tournament (“2010 Pro-Am Tournament”) held as part of The AT&T
National Golf Tournament (“AT&T Tournament”) at Aronimink Golf Club. Littles provided
the invitation to Stapleton, Marcus and Conti at a time when Capital had an ongoing
business relationship with the PLCB as a broker for multiple products listed/pending listing
before the PLCB. The ticket used by Stapleton was provided by Bacardi, USA, a sponsor
of the AT&T Tournament. Capital serves as a broker for Bacardi in Pennsylvania.
Stapleton played in the 2010 Pro-Am Tournament on June 28, 2010. The packaged
benefits made available to each golfer are detailed in Fact Finding 67. Stapleton asserts
that he did not avail himself of the “Pro-Am gift package” valued at a total of $197.62. The
other packaged benefits included food, beverages, and recreation/entertainment. Fact
Finding 67.
Stapleton provided Littles with a $160.00 cash payment as payment for the 2010
Pro-Am Tournament. Stapleton estimated the approximate cost of the value of his round of
golf based upon his being a member of Aronimink and not availing himself of the full
benefits package. However, Aronimink Golf Club members were not given the opportunity
for any discounts for playing in the 2010 Pro-Am Tournament. Stapleton’s $160.00
payment received by Capital was donated to the American Diabetes Association. The
parties have stipulated that the value that Stapleton received by playing in the 2010 Pro-
Am Tournament was $1,200.00. Fact Findings 60 c, 117.
As a vendor of the PLCB, Capital invited Stapleton and Conti to participate in the
2011 AT&T Pro-Am Tournament (“2011 Pro-Am Tournament”) held as part of The AT&T
Tournament at Aronimink Golf Club. Littles provided the invitation to Stapleton and Conti
at a time when Capital had an ongoing business relationship with the PLCB as a broker for
multiple products listed/pending listing before the PLCB. Tickets were provided by Bacardi,
USA, a sponsor of the AT&T Tournament. As noted above, Capital serves as a broker for
Bacardi in Pennsylvania.
Stapleton played in the 2011 Pro-Am Tournament on June 29, 2011. The packaged
benefits made available to each golfer are detailed in Fact Finding 74. Stapleton asserts
that he did not avail himself of the “Pro-Am VIP gift package” valued at a total of $487.70.
The other packaged benefits included food, beverages, and recreation/entertainment.
Fact Finding 74.
Stapleton asserted that he issued payment to Littles in the amount of $300.00 in
association with his playing in the 2011 Pro-Am Tournament. Stapleton estimated the
approximate cost of the value of his round of golf based upon his being a member of
Aronimink. However, Aronimink Golf Club members were not given the opportunity for any
discounts for playing in the 2011 Pro-Am Tournament. The parties have stipulated that the
value that Stapleton received by playing in the 2011 Pro-Am Tournament was $1,200.00.
Fact Findings 60 c, 117.
In 2009, 2010, and 2011, Capital/Alliance held golf outings referred to as the
Stapleton, 12-027
Page 42
“Alliance Golf Open,” which included officials of the PLCB. The Alliance Golf Open was
organized as a means by which Capital and the Alliance suppliers could strengthen their
relationship with the PLCB and to allow various Alliance senior management officials to
have “face time” with PLCB officials.
Stapleton did not participate in the 2009 Alliance Golf Open.
Stapleton participated in the 2010 Alliance Golf Open and the 2011 Alliance Golf
Open. These events included a warm up session, lunch, a round of golf, and dinner.
Although Stapleton asserted that the event(s) had a business purpose, no specific time
slot was reserved for any specific business/product presentations by Capital and/or the
Alliance suppliers at the events. The costs associated with the 2010 and 2011 Alliance
Golf Open were divided into four equal amounts paid by Capital, Bacardi, Brown Forman,
and Remy.
The 2010 Alliance Golf Open was held at the River Crest Golf Club in Phoenixville,
Pennsylvania, on July 15, 2010. The cost of the golf outing totaled $7,363.00 for the
fifteen participants. The 2011 Alliance Golf Open was held at the Philadelphia Country
Club in Gladwyne, Pennsylvania, on July 14, 2011. The cost of the golf outing totaled
$9,487.96 for the twenty participants. The parties have stipulated that Stapleton realized a
private pecuniary gain of $965.27 from his participation at the 2010 Alliance Golf Open
and the 2011 Alliance Golf Open. Fact Finding 117.
The PLCB is a member of the National Alcohol Beverage Control Association
(“NABCA”). NABCA represents control state systems in those jurisdictions that directly
control the distribution and sale of beverage alcohol within their borders. NABCA holds
conferences each year alternating between Arizona and Florida.
At the 2011 NABCA Conference held in Phoenix, Arizona, Stapleton participated in
a golf outing paid for by PLCB supplier Brown-Forman. The cost of the golf outing totaled
$4,613.04 (approximately $128.14 per person). Stapleton also received meals
sponsored/paid for by Mark Littles of Capital.
At the 2012 NABCA Conference held in Naples, Florida, Stapleton participated in
golf outings on May 18 and 19, 2012, which were paid for by PLCB vendors. The value of
the May 18, 2012, golf outing arranged by White Rock Distributors could not be
determined. The value of the May 19, 2012, golf outing arranged by Brown-Forman was
approximately $139.00 per person.
While serving as Chairman of the PLCB, Stapleton accepted hospitality and/or gifts
from Littles and/or Desmond, representatives of Capital. The specific value of the
hospitality received by Stapleton from Littles could not be determined. Desmond’s
expense summaries documented the purchase of picture frames on September 14, 2009,
in the amount of $172.25, of which one was provided as a gift to Stapleton. The specific
value of the frame received by Stapleton could not be determined. Stapleton accepted the
hospitality and gift from Littles and/or Desmond at a time when Stapleton was responsible
for making decisions as a PLCB Board Member regarding listing and delisting of products
from suppliers represented by Capital.
In 2011, while serving as Chairman of the PLCB, Stapleton accepted from Erin
Schiller, a representative of Beam Global Wine and Spirits, hospitality/gifts valued at
$53.75 for parking and meals at a Philadelphia Phillies game on July 31, 2011, and wine
and spirits totaling $395.26 on September 14, 2011, as detailed in Fact Findings 110-110
b. The expenses were ultimately paid for by Beam Global Wine and Spirits. Stapleton
accepted the hospitality/gifts from Schiller while Stapleton had responsibility for making
decisions as a PLCB Board Member regarding listing and delisting of products from Beam
Stapleton, 12-027
Page 43
Global Wine and Spirits, a supplier of alcohol/spirits to the Commonwealth of
Pennsylvania.
As detailed in the Fact Findings, while serving as Chairman of the PLCB, Stapleton
accepted additional hospitality from representatives of vendors/brokers/suppliers doing
business with the PLCB at a time when Stapleton was responsible for making decisions as
a PLCB Board Member regarding listing and delisting of products. Absent Stapleton’s
office as a PLCB Board Member, Stapleton would not have been in a position to receive
such hospitality.
The parties have stipulated that Stapleton, in his position as Member and Chairman
of the PLCB, used the authority of his office to realize a private pecuniary benefit of
$7,258.54, calculated as the sum of the items listed below, for himself and a business with
which he is associated (Keystone Weekend) when he accepted gifts, transportation,
lodging, and/or hospitality from vendors and/or brokers and suppliers of the PLCB at a time
when Stapleton was participating in and making decisions regarding the PLCB's purchase
of wine and spirits from those same vendors and/or brokers and suppliers:
DescriptionValue
$1,200.00
2010 AT&T Pro Am (Capital)
$1,200.00
2011 AT&T Pro Am (Capital)
$ 965.27
2010 & 2011 Alliance Outings (Capital)
2
$3,004.87
Keystone Weekend 2008-2012
$ 128.14
Golf at 2011 NABCA (Capital)
$ 139.00
Golf at 2102 NABCA (Capital)
$ 172.25
Picture Frame, Cristina Desmond (Capital)
$ 449.01
Hospitality/alcohol Erin “Red” Schiller (Bacardi)
Total$7,258.54
As for Stapleton’s SFIs, the parties have stipulated that for Stapleton’s SFIs for
calendar years 2010 and 2011, Stapleton failed to list under transportation, lodging and
hospitality that he played in the AT&T Pro-Am Tournament held at Aronimink Golf Club as
a guest of PLCB suppler, Bacardi USA, for which the value was in excess of $650.00.
The parties have further stipulated that when combined with other hospitality received by
the same source (vendors) in any given calendar year, total hospitality received by
Stapleton may have exceeded the $650.00 reporting threshold.
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
3. The Investigative Division will recommend the following in
relation to the above allegations:
a. That a transgression of Section 1103(a) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1103(a), occurred in relation to
Stapleton’s acceptance of donations of alcoholic
beverage (e.g. wine, spirits, liquor, etc.) for
consumption at events hosted by the Keystone
Weekend Inc., a 501(c)(3) entity with which
2 Value for actual determinable value of alcohol donated year 2011 ($1,581.51) and estimated value year
2012 ($1,423.36).
Stapleton, 12-027
Page 44
Stapleton is associated, when the entity
donating alcoholic products had ongoing
contractual relationships with the PLCB, and
Stapleton was a Member and Chairman of the
PLCB;
b. That a transgression of Section 1103(a) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1103(a), occurred in relation to
Stapleton’s acceptance of hospitality (meals, golf
outings, beverages) provided by various vendors
who had ongoing contractual relationships with
the PLCB, and Stapleton was a Member and
Chairman of the PLCB;
c. That a violation of Section 1105(b) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1105(b), occurred in relation to Stapleton’s
omission to report receipt of gifts and hospitality,
as enumerated in paragraphs “a” and “b” above,
from vendor(s) of the PLCB, upon Statements of
Financial Interests filed for the 2010 and 2011
calendar years.
4. Stapleton agrees to make payment in the amount of $7,258.54
in settlement of this matter payable to the Commonwealth of
Pennsylvania and forwarded to the Pennsylvania State Ethics
Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
5. Stapleton agrees to file complete and accurate Statements of
Financial Interests with the Pennsylvania Liquor Control Board
through the Pennsylvania State Ethics Commission, for the
2010 and 2011 calendar years within thirty (30) days of the
issuance of the final adjudication in this matter.
6. Stapleton agrees to not accept any reimbursement,
compensation or other payment from the Pennsylvania Liquor
Control Board representing a full or partial reimbursement of
the amount paid in settlement of this matter.
7. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcement or other
authority to take action in this matter. Such, however, does
not prohibit the Commission from initiating appropriate
enforcement actions in the event of Respondent's failure to
comply with this agreement or the Commission's order or
cooperating with any other authority who may so choose to
review this matter further.
Consent Agreement, at 2.
In considering the Consent Agreement, we accept the recommendation of the
parties for a finding that a transgression of Section 1103(a) of the Ethics Act, 65 Pa.C.S. §
1103(a), occurred in relation to Stapleton’s acceptance of donations of alcoholic
beverages, such as wine, sprits, liquor and the like, for consumption at events hosted by
Stapleton, 12-027
Page 45
the Keystone Weekend Inc., a 501(c)(3) entity with which Stapleton is associated, when
the entity donating alcoholic products had ongoing contractual relationships with the PLCB
and Stapleton was a Member and Chairman of the PLCB.
The acceptance of gifts, transportation, lodging or hospitality from donor(s) with
which a public official/public employee has involvement in his public capacity can form the
basis for a conflict of interest under Section 1103(a) of the Ethics Act. See, Cohen,
Opinion 03-006 (regarding a PLCB Hearing Examiner’s prospective acceptance of item(s)
from licensees); see, e.g., Haldeman, Order 1443; Munford, Order 1390; Espenshade,
Order 1387.
As Chairman of the PLCB, Stapleton interacted and met with representatives of
vendors, brokers and suppliers of the PLCB. These individuals provided Stapleton with
gifts, meals, alcohol donations and golf outings during Stapleton’s tenure with the PLCB.
The parties have stipulated that Stapleton, in his position as Member and Chairman
of the PLCB, used the authority of his office to realize a private pecuniary benefit of
$7,258.54, calculated as the sum of the items listed in Fact Finding 117, for himself and a
business with which he is associated, Keystone Weekend, when he accepted gifts,
transportation, lodging, and/or hospitality from vendors and/or brokers and suppliers of the
PLCB at a time when Stapleton was participating in and making decisions regarding the
PLCB's purchase of wine and spirits from those same vendors and/or brokers and
suppliers. Of the aforesaid total private pecuniary benefit of $7,258.54, the amount of
$3,004.87 was for alcohol donated by PLCB vendors, and received by Stapleton or by
others at Stapleton’s direction, for use at the Keystone Weekend in 2011 and 2012.
We hold that a transgression of Section 1103(a) of the Ethics Act, 65 Pa.C.S. §
1103(a), occurred in relation to Stapleton’s acceptance of donations of alcoholic
beverages, such as wine, sprits, liquor and the like, for consumption at events hosted by
the Keystone Weekend Inc., a 501(c)(3) entity with which Stapleton is associated, when
the entity donating alcoholic products had ongoing contractual relationships with the PLCB
and Stapleton was a Member and Chairman of the PLCB.
Likewise, based upon the Stipulated Findings set forth above, we accept the
recommendation of the parties and we hold that a transgression of Section 1103(a) of the
Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Stapleton’s acceptance of
hospitality (meals, golf outings, beverages) provided by various vendors who had ongoing
contractual relationships with the PLCB, while Stapleton was a Member and Chairman of
the PLCB.
We agree with the parties, and we hold, that a violation of Section 1105(b) of the
Ethics Act, 65 Pa.C.S. § 1105(b), occurred in relation to Stapleton’s omission from his SFIs
filed for the 2010 and 2011 calendar years of reportable information as to his receipt of
gifts and hospitality from vendor(s) of the PLCB. The omitted items included reportable
information under the category of transportation, lodging and hospitality regarding
Stapleton’s participation in the 2010 Pro-Am Tournament and the 2011 Pro-Am
Tournament as a guest of PLCB suppler, Bacardi USA.
It appears that the Investigative Division in the exercise of its prosecutorial
discretion has elected to non pros the portion of the allegations pertaining to solicitation of
vendor(s) of the PLCB to arrange for and provide celebrity chef(s) for the Keystone
Weekend.
As part of the Consent Agreement, Stapleton has agreed to make payment in the
amount of $7,258.54 payable to the Commonwealth of Pennsylvania and forwarded to this
Commission within thirty (30) days of the issuance of the final adjudication in this matter.
Stapleton, 12-027
Page 46
Stapleton has also agreed to not accept any reimbursement, compensation or other
payment from the PLCB representing a full or partial reimbursement of the amount paid in
settlement of this matter. Stapleton has further agreed to file complete and accurate SFIs
for calendar years 2010 and 2011 with the PLCB, through this Commission, within thirty
(30) days of the issuance of the final adjudication in this matter.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
Accordingly, per the Consent Agreement of the parties, Stapleton is directed to
make payment in the amount of $7,258.54 payable to the Commonwealth of Pennsylvania
th
and forwarded to this Commission by no later than the thirtieth (30) day after the mailing
date of this adjudication and Order.
Per the Consent Agreement of the parties, Stapleton is further directed to not accept
any reimbursement, compensation or other payment from the PLCB representing a full or
partial reimbursement of the amount paid in settlement of this matter.
To the extent he has not already done so, Stapleton is directed to file complete and
accurate SFIs for calendar years 2010 and 2011 with the PLCB, through this Commission,
th
by no later than the thirtieth (30) day after the mailing date of this adjudication and Order.
Compliance with the foregoing will result in the closing of this case with no further
action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV.CONCLUSIONS OF LAW:
1. As a Member of the Pennsylvania Liquor Control Board (“PLCB”) from
approximately June 17, 1997, through October 5, 2012, Respondent Patrick
Stapleton (“Stapleton”) has been a public official subject to the provisions of the
Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq.
2. A transgression of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a),
occurred in relation to Stapleton’s acceptance of donations of alcoholic beverages,
such as wine, sprits, liquor and the like, for consumption at events hosted by the
Keystone Weekend Inc., a 501(c)(3) entity with which Stapleton is associated, when
the entity donating alcoholic products had ongoing contractual relationships with
the PLCB and Stapleton was a Member and Chairman of the PLCB.
3. A transgression of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a),
occurred in relation to Stapleton’s acceptance of hospitality (meals, golf outings,
beverages) provided by various vendors who had ongoing contractual relationships
with the PLCB, while Stapleton was a Member and Chairman of the PLCB.
4. A violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred in
relation to Stapleton’s omission from his Statements of Financial Interests filed for
the 2010 and 2011 calendar years of reportable information as to his receipt of gifts
and hospitality from vendor(s) of the PLCB.
In Re: Patrick Stapleton, : File Docket: 12-027
Respondent : Date Decided: 2/6/14
: Date Mailed: 2/12/14
ORDER NO. 1628
1. A transgression of Section 1103(a) of the Public Official and Employee Ethics Act
(“Ethics Act”), 65 Pa.C.S. § 1103(a), occurred in relation to the acceptance by
Patrick Stapleton (“Stapleton”) of donations of alcoholic beverages, such as wine,
sprits, liquor and the like, for consumption at events hosted by the Keystone
Weekend Inc., a 501(c)(3) entity with which Stapleton is associated, when the entity
donating alcoholic products had ongoing contractual relationships with the
Pennsylvania Liquor Control Board (“PLCB”) and Stapleton was a Member and
Chairman of the PLCB.
2. A transgression of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a),
occurred in relation to Stapleton’s acceptance of hospitality (meals, golf outings,
beverages) provided by various vendors who had ongoing contractual relationships
with the PLCB, while Stapleton was a Member and Chairman of the PLCB.
3. A violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred in
relation to Stapleton’s omission from his Statements of Financial Interests filed for
the 2010 and 2011 calendar years of reportable information as to his receipt of gifts
and hospitality from vendor(s) of the PLCB.
4. Per the Consent Agreement of the parties, Stapleton is directed to make payment in
the amount of $7,258.54 payable to the Commonwealth of Pennsylvania and
forwarded to the Pennsylvania State Ethics Commission by no later than the
th
thirtieth (30) day after the mailing date of this Order.
5. Per the Consent Agreement of the parties, Stapleton is further directed to not
accept any reimbursement, compensation or other payment from the PLCB
representing a full or partial reimbursement of the amount paid in settlement of this
matter.
6. To the extent he has not already done so, Stapleton is directed to file complete and
accurate Statements of Financial Interests for calendar years 2010 and 2011 with
the PLCB, through the Pennsylvania State Ethics Commission, by no later than the
th
thirtieth (30) day after the mailing date of this Order.
7. Compliance with Paragraphs 4, 5 and 6 of this Order will result in the closing of this
case with no further action by this Commission.
a. Non-compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
___________________________
John J. Bolger, Chair